Spotify Makes Two Startup Purchases with Podcasting in Mind

Having already conquered the streaming music world, Spotify is aiming to boost its standing in podcasting. And its making two key acquisitions of podcasting focused startups to forward that goal.

Spotify announced today that it acquired Gimlet Media, which produces podcast content, and Anchor, which creates, monetizes and publishes podcasts. Terms of both transactions were not disclosed.

With these acquisitions, Spotify will not only be one of the largest distribution mediums for podcasts, but will also offer content creators a place to develop, manage and monetize them as well.

“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 Spotify co-founder and CEO Daniel Elk, in a statement. “We are proud to welcome Gimlet and Anchor to the Spotify team, and we look forward to what we will accomplish together.”

The co-founders of Gimlet Media stated they also were happy to be a part of the Spotify team. “The medium of audio is uniquely great at creating human connection and understanding,” said Alex Blumberg and Matt Lieber, in a joint statement. “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 Anchor CEO Michael Mignano. “We look forward to continuing to empower creators all over the world to build an audience, generate revenue, and most importantly, have their voices head.”

Spotify has stated that they will be making further acquisitions to help boost their status in music and podcast distribution.

The Gimlet and Anchor transactions are expected to close in first quarter 2019.

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