There has been an update in the continuing saga of audioBoom and Triton Digital. Audioboom has managed to raise funding in an effort to secure its operational capital.
Previously, the deal between the two companies was that audioBoom would buy Triton Digital for $185 million in a reverse takeover. Later, it was reported by Radio Ink that “due to insufficient funds, that deal is off and audioBoom is in jeopardy of shutting down.”
RAINN News provides an easy-to-understand explanation of a May 25, 2018, filing on the London Stock Exchange website regarding audiBoom. The company was able to raise 500,000 GBP from an existing investor. The investor is Candy Ventures. Nick Candy is the 90% shareholder of Candy Ventures.
The loan from Candy Ventures is in convertible notes. The announcement says the loan is “pending the completion” of audioBoom’s “current equity fundraise, which is being undertaken to provide additional working capital, investment in additional podcasting content and other growth initiatives.” The deadline to convert the loan notes is set at June 30, 2018.
Earlier this year, Audioboom bought Triton Digital for $185 million dollars in a reverse takeover. Now, just a few months later, that deal has ended. I haven’t been able to find a direct announcement about this from either Audioboom or Triton Digital. That being said, there are other articles out there that have additional information about what happened.
Radio Ink reported: “Due to insufficient funds, that deal is off and Audioboom is in jeopardy of shutting down.”
Radio Ink also reported that Audioboom was now looking for new funding so it can invest in additional podcasting content and for working capital. In addition, Audioboom now owes Triton Digital a “Break Fee” of just under $1 million, which must be paid 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.”
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. Will their show be considered “smaller” and “unsustainable”? Will their show be among the podcasts Audioboom wants to reduce?
If your podcast is on Audioboom, and you are anxious about what may happen to your show if Audioboom is unable to obtain new funding, it might be time to make a change. Start looking at other companies that host podcasts just in case you have to find a new home for your show.