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Auddia Inc. (AUUDW), a leading provider of AI-powered audio streaming solutions, has announced significant strategic changes and a potential business combination. The company, which operates through its subscription-based platform, has shifted its focus from a direct-to-consumer model to a B2B AI-driven music discovery model. This strategic pivot is part of a broader effort to transform Auddia into a holding company delivering AI and web3 capabilities.
On October 16, 2025, Auddia updated its corporate overview to reflect a proposed restructuring and a letter of intent (LOI) for a business combination that would convert Auddia into a holding company. The company reserved the URL mccarthyfinney.com and the NASDAQ ticker MCFN. The proposed transaction remains a non-binding LOI as parties continue to work toward definitive documents, according to
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Auddia's new business model involves transforming its faidr app to make AI-driven ad-free AM/FM streaming free for consumers while monetizing through artists and labels seeking radio exposure. The new platform, called Discovr Radio, features an AI Placement Engine that strategically inserts artists' music into radio feeds, targeting up to 33% of stream content. Artists will gain access to an Artist Portal providing analytics on plays, listener engagement, and demographic data. The platform will be available through a monthly subscription model for artists and labels, with an MVP version expected by Q1 2026 .
In preparation for this strategic shift, Auddia announced a restructuring of its engineering team, aimed at reducing costs and aligning with its planned AI-native holding company structure. The reorganization is expected to reduce engineering costs by $750,000 annually. Key changes include the transition of Pablo Calderon, lead AI engineer, to the holding company's AI team, and the departure of CTO Peter Shoebridge. The company is shifting from a consumer subscription model to a B2B SaaS model, focusing on connecting artists and labels with radio listeners through AM/FM radio streams .
Jeff Thramann has succeeded Michael Lawless as CEO, with Lawless retiring after 13 years of leadership. The company has appointed three new independent board members with expertise in AI infrastructure. A special committee has been formed to evaluate a potential business combination opportunity that would transform Auddia into a subsidiary of an AI native holding company .
Auddia has also presented its updated corporate overview at the LD Micro Main Event on October 21, 2025, at 2:00 PM PT. The proposed transaction requires $10 million in additional capital and includes a 30-day exclusivity period for negotiations. The new entity will focus on delivering AI efficiencies such as discounted compute costs and centralized AI model training, alongside web3 capabilities including treasury strategies and blockchain development .
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