Spotify Technology S.A. (NYSE:SPOT), the popular music streaming service, is to acquire Gimlet Media and Anchor.
The terms of the two transactions – expected to close in the first quarter of 2019 and subject to customary closing conditions – were not disclosed.
Co-founded in 2014 by Alex Blumberg and Matt Lieber, Gimlet Media is a New York City-based independent producer of podcast content. Gimlet Creative, the company’s in-house advertising agency, allows brands to find their voice in audio and produces official podcasts for brands like eBay, Tinder, Gatorade and Mastercard. Gimlet Pictures, its film and television development and production arm, focuses on bringing Gimlet franchises to the small and big screens.
The company will bring to Spotify its podcast studio with dedicated IP development, production and advertising capabilities.
Founded in 2015 by Michael Mignano, CEO, Anchor is a Brooklyn, New York-based provides podcast creation, publishing, and monetization services. Its end-to-end podcasting platform, available for free on iOS, Android, and web, provides creative tools, unlimited free content hosting, distribution everywhere podcasts are heard, and monetization options built for beginners and pros alike. It will bring to Spotify its platform of tools for podcast creators and its creator base.
With these acquisitions, Spotify aims to become both the premier producer of podcasts and the leading platform for podcast creators.
Led by Daniel Ek, co-founder and CEO, Spotify allows people to discover, manage, and share over 40 million tracks (free), or upgrade (to Spotify Premium) to access exclusive features including offline mode, improved sound quality, Spotify Connect and ad-free listening.
Today, it is the world’s largest music streaming subscription service with a community of more than 200 million users, including over 96 million Spotify Premium subscribers, across 78 markets.