Audioboom surges as Amazon, Spotify said to be mulling bids

Audioboom shares surged on Monday following a report that Amazon and Spotify are considering rival takeover approaches for the AIM-listed podcasting company.

According to Sky News, the two digital behemoths have been exploring bids for Audioboom in recent weeks, and could decide whether to make formal offers as soon as this month.

Amazon was said to have been working with investment bankers at JP Morgan on its prospective interest in Audioboom, which is backed by property tycoon Nick Candy.

City sources told Sky over the weekend that an approach from either Amazon or Spotify was likely to be pitched at a significant premium to Friday's closing share price of 1,760p.

A person close to the situation told Sky that a formal approach from Amazon and Spotify could yet fail to materialise, and that it was unclear how public disclosure of their potential interest would affect their intentions.

At 1050 GMT, the shares were up 10.5% at 1,944p.