- Spotify to acquire podcast hosting and ad company Megaphone
- The deal is worth 235 million dollars
- Spotify already had an existing partnership with Megaphone.
Spotify is a Swedish-based audio streaming and media service provider. The platform is owned by Spotify AB. Its global headquarters are in Stockholm, Sweden.
Recently the company has faced criticism over the musician compensation amount. However, when it comes to podcasting, it has a lot of money to burn. The company confirmed its acquisition of Megaphone. This deal is worth $235 million.
Megaphone was initially launched in 2015, by the Slate Group under the name Panopoly. It was rebranded as Megaphone in 2019. The company produced a number of flagship podcasts for high-profile media brands. It includes BuzzFeed, The Wall Street Journal, and Vox.
The rebranding shuttered its editorial efforts to focus on back-end concerns. It focused on services like hosting, ad tools, and distribution. However, prior to the deal, there was an existing partnership between the two companies.
Words of Spotify
“Together Spotify and Megaphone will offer podcast publishers innovative tools. It will help them earn more from their work”, said Spotify in a press release. “This includes the opportunity to opt in to have their content monetized”.
“It will match their loyal listeners with even greater demand from advertisers”.
Megaphone is the latest in a long line of recent podcast-centric acquisitions for Spotify. It ranges from tens to hundreds of millions a pop. This should go away towards cementing the company’s long-standing dream. It aims to become one of the mediums’ biggest players.
The list of acquisitions is long. It includes a number of content producers. For instance Gimlet, The Ringer and Parcast. It also includes technology companies like Anchor. In May Spotify also purchased exclusivity to the immensely popular Joe Rogan Experience.
The acquisition had reportedly caused some unrest among employees. Specifically the one who has taken issue with the show’s controversial subject matter.
