Cutting Audioboom holding

Main photo: Broken headphones by 
Glenn, licensed under Creative Commons Attribution-NonCommercial-ShareAlike 2.0 Generic (CC BY-NC-SA 2.0).

I decided to considerably cut back my Audioboom shareholding last week following the news of AAQUA’s purchase of a £6.75m stake from majority shareholder Nick Candy, as I’ve previously chronicled. I wrestled with this decision for a few days for various reasons. I like Audioboom as a concept and the prospects of the podcasting sector more generally. But even though the company finally seems to be moving towards profitability, I feel this is too slow and the company’s costs are too high. I’ve followed this company for a long time. I still believe it has potential, however, also feel concerned about the interconnected nature of more than half the company’s shareholders, which has only increased with Robert Bonnier’s Dutch-registered company buying shares from Candy.

So I sold half my shareholding at £4.37 a share, realising a profit of approximately 100%. This reduces the risk to my capital to nothing and leaves me positioned to still benefit from any potential upside in the future. I was worried the share price might rocket in the aftermath, but so far, despite reaching £4.50 a share, which is the price that AAQUA effectively bought in at, it has dropped again to £3.975 a share.

As an aside, there was some news last week that indirectly impacts Audioboom, with the announcement that Triton Digital would be bought up by iHeartMedia for $230m, as reported by the Wall Street Journal. This is interesting because as part of the failed reverse takeover by Audioboom, Triton received a 1.16% shareholding. This will have been diluted following the subscription by Peter Antonioni, so I estimate it now stands at around 1.04% of Audioboom. I presume these shares now come under the control of iHeartMedia. I’m not at all suggesting that iHeartMedia would want to buy Audioboom. In fact, they bought Voxnext last year, and there is some cross over in what those two companies do. What I’m saying is that we can now trace some ownership between iHeartMedia, a company making a big push in the podcast arena, and Audioboom. Nevertheless, I don’t regret selling half of my Audioboom shares, but hope to stand to profit from further increases in the share price, and would like to see the company finally make it into the black for their next quarterly update, which last year dropped on 7 April.

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