Spotify is ramping up its podcasting division by acquiring Gimlet Media and Anchor.
The company did not disclose how much it paid for each start-up, however Recode reported the Gimlet Media deal was around US$230 million.
Gimlet is known for its independent podcasts such as Startup and Reply All, and Anchor is one of the leading companies in podcast creation, publishing and monetisation services.
With these acquisitions, Spotify says Gimlet will bring its best-in-class podcast studio with dedicated IP development, production and advertising capabilities. While Anchor will bring its platform of tools for podcast creators and its established and rapidly growing creator base.
Daniel Ek, co-founder and CEO of Spotify said, “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.”
The deals are expected to close at the end of the first quarter this year.
Ek explained in a blog post, with the addition of these two companies Spotify is lining up to be the leading global podcast publisher with more shows than any other company.
He said, “These levers of growth have the potential to double the size of our industry. And no other global company is as focused on this one thing — audio — as Spotify.”
Ek said that looking at radio industry data, it is likely that over time podcasts will respresent more than 20 per cent of the audio content delivered via Spotify.
Alex Blumberg and Matt Lieber, co-founders of Gimlet Media said, “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.”
Michael Mignano, CEO of Anchor said, “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.”
Spotify has 200 million subscribers in 78 markets.