Auddia signs purchase agreement to acquire Radio FM

Auddia announced that it has signed a definitive purchase agreement to acquire Radio FM, a leading AM/FM streaming app. Closing the acquisition remains subject to financing the acquisition cost. Michael Lawless, CEO of Auddia, said, “We are seeing strong subscription conversion numbers off the faidr free tier which is solidifying our confidence that a large number of AM/FM streaming listeners are willing to pay a subscription to avoid commercials while listening to their favorite stations. The challenge now becomes how to grow the free tier user base in the most cost-efficient manner possible to increase our pool of potential subscribers. The Radio FM acquisition allows us to acquire 4.6 million retained users at a customer acquisition cost (CAC) that is approximately 70% lower than the cost to acquire a free tier user through our direct marketing methods. This is obviously a far more economical and faster way to build revenue, reduce burn, drive subscriptions, and achieve sustainability. We look forward to engaging with investors to secure the financing needed to close the transaction.”