Spotify has come below fireplace of late over questions round musician compensation, however in relation to podcasting, it has cash to burn. This morning, the streaming service confirmed its acquisition of Megaphone for a reported $235 million.
Launched by The Slate Group in February 2015 as Panopoly, it rebranded as Megaphone in 2019. In its authentic type, the corporate produced a variety of flagship podcasts for prime profile media manufacturers, together with Buzzfeed, The Wall Avenue Journal and Vox. The rebranding, nevertheless, adopted a shuttering of its editorial efforts to concentrate on again finish issues like internet hosting, advert instruments and distribution.
Spotify already had an present partnership with the corporate, together with use of its internet hosting companies. This deal, it appears, is basically centered on the service’s advert instruments. “Collectively, Spotify and Megaphone will provide podcast publishers progressive instruments that can assist them earn extra from their work,” Spotify stated in a press launch. “This consists of the chance to decide in to have their content material monetized, matching their loyal listeners with even higher demand from advertisers.”
Megaphone is the most recent in a protracted line of latest podcast-centric acquisitions for Spotify, ranging from tens to lots of of tens of millions a pop. It ought to go a method towards cementing the corporate’s long-standing dream of develop into one of many medium’s greatest gamers.
The record of acquisitions additionally consists of content material producers like Gimlet, The Ringer and Parcast, together with know-how corporations like Anchor. This Could, it additionally bought exclusivity to the immensely standard Joe Rogan Expertise for greater than $100 million — an acquisition that has reportedly brought on some unrest amongst staff who’ve taken subject with the present’s controversial material.