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Spotify confirms it is acquiring Gimlet and Anchor days after media reports
Posted on Wednesday, 06 February 2019 12:53
Spotify Technology, the Luxembourg-based arm of the Swedish music streaming giant that went public last year, confirmed recent media reports that it is making two strategic acquisitions to expand in the podcasting market.
The targets include Gimlet Media, a renowned independent producer of podcast content, and Anchor, a leading market for podcast creation, publishing and monetisation services.
Spotify did not disclose the value of these deals; however, multiple sources familiar with the matter told Recode last week that the former could be valued at over USD 200.00 million in a sale.
Interestingly, the transaction for New York-based Gimlet was the only one to make headlines in recent days, making the additional purchase of Anchor a surprise to most readers.
Spotify said the addition of the two companies will position the group to become the premier producer of podcasts and the leading platform for creators of such products.
Closing for each of the deals is slated for the opening quarter of 2019 and is subject to the usual raft of approvals.
A podcast, for those who do not know, is an episodic series of digital audio or video files that a user can download in order to listen to wherever they are.
Spotify is primarily known for its music streaming, counting over 200.00 million users, 96.00 million of which subscribe to its premier service that offers over 40.00 million tracks for free, or an upgrade to a pay-monthly plan to receive exclusive features, including advertising-free listening and an offline mode.
The company’s shares closed up slightly to USD 139.40 yesterday, before declining 5.6 per cent to USD 131.65 at 07:38 this morning, valuing the business at around USD 25.06 billion.
Gimlet was established in 2014 and is behind hit series such as StartUp, Mogul and Reply All, among others. One of its most successful productions was Homecoming, a scripted podcast that has since been turned into an Amazon television show starring Julia Roberts.
Founded in 2015, Anchor gives users access to create, distribute and monetise their podcasts and is available for free on most mobile devices.
The group claims to power more than 40.0 per cent of the world’s new podcast series.
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