Spotify has agreed to acquire podcast advertising and publishing firm Megaphone in a deal valuing the company at $235 million. Megaphone’s customers include ESPN and the Wall Street Journal.
Advertisers use services like Megaphone to better target podcast listeners as producers look to more efficiently monetize shows. The podcast industry currently reaches more than 100 million monthly listeners and generates less than $1 billion in ad revenue annually.
The deal is the latest in a two-year spending spree by Spotify, which now has more than 1.9 million podcasts in its portfolio. Approximately 22% of the streaming service’s 320 million monthly users listen to podcasts. Spotify stock is up 65% year-to-date.
Spotify Podcast Acquisitions:
Megaphone — $235 million
The Ringer — $200 million
Gimlet Media — $200 million
Anchor FM — $140 million
Parcast Studios — $56 million
Joe Rogan — $100 million (exclusive license)