Spotify today announced it is acquiring podcast hosting and ad company, Megaphone in a deal reported to be worth $235M. The deal is targeted at the company’s ad services since Spotify already had an existing partnership in place with Megaphone which included making use of its hosting services.
“Together, Spotify and Megaphone will offer podcast publishers innovative tools that will help them earn more from their work,” Spotify announced in a press release.
“This includes the opportunity to opt in to have their content monetized, matching their loyal listeners with even greater demand from advertisers.”
Megaphone was launched by The Slate Group in February 2015 as Panopoly before the company was later rebranded in 2019. The company began with producing top-end podcasts for well-known media outlets such as The Wall Street Journal, Vox and Buzzfeed before it focused on hosting and ad services after the rebranding took place in 2019 to Megaphone.
The acquisition follows recent ones by Spotify as the streaming giant aims to be one of the biggest podcasting platforms in the world. In recent times, Spotify has acquired Anchor, Gimlet, The Ringer and Parcast. In May, the company paid $100 for the exclusivity to the popular Joe Rogan Experience podcast.
In October, Spotify announced it now has 320 million monthly active users globally.