All three acquisition targets in total would represent nearly 10 million monthly active users (MAUs), over $5M in annual revenue, and over $3M in operating cash flow

The purchase agreement for Radio FM representing 4.6 million MAUs, $2.3M in revenue, and $1.4M in operating cash flow has been signed and announced

The purchase agreement for target #2 is expected to be signed before the end of Q1 2024

Target #3 remains under non-binding LOI with a binding exclusivity clause giving Auddia the exclusive right to close through the end of Q3 2024

BOULDER, CO, March 04, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire -- Auddia Inc. (NASDAQ:AUUD) (NASDAQ:AUUDW) ("Auddia" or the "Company"), a proprietary AI platform for audio identification and classification and related technologies, that is reinventing how consumers engage with AM/FM radio, podcasts, and other audio content, provides today an update on its overall M&A strategy on the heels of announcing the signing of a definitive purchase agreement to acquire Radio FM (RFM), a leading AM/FM streaming app. Closing of the RFM acquisition remains subject to securing adequate financing.

Jeff Thramann, Executive Chairman of Auddia, said, “The previously announced RFM acquisition represents the first M&A target of the three AM/FM streaming providers we have under LOI. If we are able to arrange financing for RFM and our other targets, the acquisitions would completely change the financial trajectory of Auddia. The Company would go from minimal revenue and users to over $5M in annual revenue and almost 10 million monthly active users. Whereas the synergies of many acquisitions are vague or speculative, the synergies from acquiring almost 10 million users already listening to AM/FM radio via the stream could not be more obvious or more powerful. Our goal will be to convert as many of these users as possible to paid subscribers. Historically, we have been converting about 10% of our free tier users on faidr to subscribers. If even a fraction of that conversion rate holds up against our acquired users, we anticipate that Auddia would rapidly become cash flow positive.”

Auddia continues to advance discussions with the other two acquisition targets under LOI. Diligence related to target #2 is complete and the purchase agreement is in its final stages of negotiation. Auddia expects to sign the definitive purchase agreement for target #2 before the end of Q1 2024.

To provide more flexibility on timeline, the Company entered into discussions with target #3 to secure an option to extend the exclusive right to acquire the target through Q3 of 2024 if needed. Auddia believes a definitive purchase agreement for target #3 will be executed by Q3 2024.