Content streaming giants Amazon and Spotify are reportedly contemplating rival takeover bids for the London-listed podcasting distribution platform, AudioBoom PLC, which has witnessed a significant jump in its share prices and revenues through the course of the pandemic.
It is expected that the two digital giants will be soon deciding on making formal offers this month itself.
Amazon has been speculated to be working with JP Morgan’s investment bankers regarding its potential interest in AudioBoom.
Sources have suggested that an approach from either Spotify or Amazon might be pitched at a significant premium to AudioBoom’s closing share price on Friday, of £17.60 ($23.81).
Another source closer to the matter, however, has stated that a formal approach from the two may fail to effectively materialize, and that it is not yet clear how their intentions might be affected upon the public disclosure of their interest.
The sudden interest in AudioBoom is a testament to the growing importance of podcasting as an individual media asset.
The podcasting platform provides commercial services to its partners, such as UK’s Cycling Podcast, and Casefile True Crime of the US, with the help of its adtech (advertising technology) platform.
It also reached a market capitalization of over £275 million ($372 million), with shares having increased five-fold over the last year.
A recent trading update by the company also revealed that its revenues have grown from 125pc to $60.2 million in the year ending December 31. The firm also recorded its first yearly adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $3 million.
Stuart Last, CEO of AudioBoom, described the year as a phenomenal one for the company.
A few other media groups have also been reported to have shown a takeover interest in AudioBoom. All Active Asset Capital, a British asset manager, had called off a bid last year in September that would have otherwise valued the firm’s share price at £12 ($16.27) each.
Previously in October 2020, the London-listed firm had also called off a sale process when it was valued at only £24 million ($32 million).
Both Amazon and Spotify have declined to make comments on the matter.