Spotify Spends $340 Million to Acquire Gimlet and Anchor
Spotify confirms it spends nearly $340 million in cash to purchase podcast networks Gimlet and Anchor. The acquisitions are part of a larger $500 million strategy to dominate the podcasting industry.
Spotify confirms that it spends just shy of $340 million in cash to purchase podcast networks Gimlet and Anchor. An SEC filing reveals the exact price tag, with reports suggesting that Gimlet costs around $200 million and Anchor accounts for the remaining $140 million. These cash transactions deliver significant returns for early investors in both companies.
The purchases represent a massive strategic shift for the streaming giant, which historically treats podcasts as an afterthought to music. CEO Daniel Ek admits that he did not originally realize audio beyond music would be the future of Spotify when he founded the company in 2006. He now sees incredible growth potential in the evolving podcast format.
These two deals use up a large portion of Spotify's planned acquisition budget for the year. The company sets aside up to $500 million for multiple acquisitions in 2019, leaving approximately $160 million for future podcasting investments. Spotify clearly intends to establish a dominant position in the audio space beyond just music streaming.