Wednesday, February 6, 2019

Spotify buys not one, but two podcasting companies: Gimlet Media and Anchor | Music Business Worldwide

Rumors in the media last week suggested that Spotify was going to buy a major podcasting company. In the end, it went one better than that.

SPOT has just confirmed that it has entered into definitive agreements to acquire New York-based podcasting production company Gimlet Media as well as Anchor, whose software “enables anyone to easily create, distribute, and monetize a podcast”.

Multiple press reports on Friday (February 1) suggested that Spotify was set to pay over $200m – perhaps as much as $230m – for Gimlet, which was founded in 2014 and is behind popular ‘casts such as StartUp, Reply All, Homecoming and Mogul.

Spotify said today (February 6) that the buyouts positioned it “to become both the premier producer of podcasts and the leading platform for podcast creators”.

“These acquisitions will meaningfully accelerate our path to becoming the world’s leading audio platform, give users around the world access to the best podcast content, and improve the quality of our listening experience as well as enhance the Spotify brand,” said Daniel Ek, Spotify co-founder and CEO.

“We are proud to welcome Gimlet and Anchor to the Spotify team, and we look forward to what we will accomplish together.”

“Spotify is poised to become the largest audio platform in the world and we are excited for Gimlet’s award-winning podcasts to connect with new audiences around the world,” said Alex Blumberg and Matt Lieber, co-founders of Gimlet Media (pictured).

“The medium of audio is uniquely great at creating human connection and understanding. We are thrilled that Gimlet is joining Spotify to do that at a global scale, on the platform and beyond.”

“We are incredibly excited to introduce Anchor’s industry-best podcasting tools to Spotify’s massive user base as we continue our journey, now with even greater resources,” said Michael Mignano, CEO of Anchor.

“We look forward to continuing to empower creators all over the world to build an audience, generate revenue, and most importantly, have their voices heard.”

The transactions are expected to close in the first quarter of 2019, subject to customary closing conditions.Music Business Worldwide


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