Audioboom Group PLC (AIM:BOOM) shares bounced in early trading following reports that Spotify Technology SA (NYSE:SPOT) and Amazon.com Inc (NASDAQ:AMZN) were mulling takeover bids for the podcast distribution platform.
Sky News reported that the tech giants were considering an approach for the UK group, with the potential of formal offers being made as soon as this month.
It was reported that Amazon is working with investment bankers at JP Morgan on its interest in Audiboom, with sources saying that any offer would be pitched at a large markup on the company’s closing share price of £17.60 on Friday 11 February.
Audioboom shares rose 13.58% in the first 30 minutes of Monday morning trading, adding to more than 400% growth over the last 12 months.
Audioboom, which distributes podcasts like No Such Thing As A Fish and the UK's Cycling Podcast, has enjoyed strong revenue growth on its way to realising its first period of underying earnings last year.
The company saw revenues grow by 125% in 2021 to $US60.2mln, with earnings before interest, tax, depreciation and amortisation (EBITDA) of US$3mln.
If a prospective bid does transpire, it will not be the first Audiboom has had to consider.
The podcast host rejected a bid from All Active Asset Capital last year, citing several drawbacks including a failure to align on an appropriate valuation.