Audioboom, the global on-demand podcasting platform, has pulled out of a major US acquisition after being unable to raise the necessary funds.
The AIM-listed group was proposing to raise £155m through a share placing to fund the purchase of Triton Digital, a US-headquartered technology provider to the online audio industry, in a deal worth £134m.
But in a statement on the London Stock Exchange, Audioboom said it has not been possible to complete the placing “in spite of significant demand”.
The company was planning to change its name to Triton Digital Group, with Triton president and CEO Neal Schore and executive vice president and CFO Mark Rosenbaum taking on the same roles at the enlarged group.
These changes will now not go ahead and Audioboom CEO Robert Proctor will remain in his current role.
He said: “Whilst the board is naturally disappointed that we were unable to raise the necessary funds to complete the proposed acquisition, I am pleased to report that our efforts to consolidate our customer base and attract more commercially viable podcasts are progressing well, with a growing proportion of our overall inventory being focussed on the lucrative in-read advertising space.
“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. I look forward to updating shareholders in the near future with regards to the company’s proposed further equity fundraising.”
Audioboom was founded in 2009 by entrepreneur Mark Rock to allow users to upload their own recordings and interviews.
Robert Proctor was appointed as chief executive in 2012 to transform the company into a platform for professional audio content. It now hosts thousands of podcasts including Associated Press, Drink Champs, News Roast, No Such Thing As A Fish and Westwood One.