$185 Million Deal is OFF: Audioboom & Triton Digital
Just a few months ago, Audioboom announced that they were buying Triton Digital for a cool $185 million dollars in a reverse takeover. What is a reverse takeover? A reverse takeover is when a public company is overtaken by a smaller company. At the time the deal was announced, InsideRadio called the deal a “major shake up” for the digital audio industry. The goal was for Audioboom to raise roughly $215 million in new shares to complete the deal which was well above the companies $48.6 million market capitalization.
If those numbers didn’t raise eyebrows, they probably should have. A few days ago, Radio Ink reported that “due to insufficient funds, that deal is off and Audioboom is in jeopardy of shutting down.”
Radio Ink also reported that Audioboom is already seeking new funding to invest in more podcasting content and working capital. They are going to need to find money somewhere quickly because they already owe $1 million to Triton Digital as a “Break Fee” and are required to make that payment by June 13, 2018.
Radio and Television Business Report reported: “With the dissolution of the Triton deal, Audioboom CEO Rob Proctor remains in his role.” The article also included quotes from Rob Proctor. The most significant portion of those quotes is the following:
“The further reduction in the number of smaller, unsustainable podcasts on our platform will allow us to further reduce our monthly operating costs. Overall, Audioboom continues to run a tighter, more compact operation, which will ultimately lead to a stronger more vibrant business.” (via Podcaster News)
The news has many podcasters talking and the wording in that quote from Audioboom CEO Rob Proctor appears to be making some of the podcasters who have their podcasts on Audioboom a bit nervous.
Many podcasters that publish content on Audioboom are beginning to wonder if its time to change platforms to protect their shows future.