Spotify Acquires Megaphone for $235M - Podcast News

Recently, Spotify has faced scrutiny regarding payments to musicians, but the company demonstrates significant investment in the podcasting sphere. The streaming platform announced this morning that it has acquired Megaphone for a reported $235 million.

Initially established by The Slate Group as Panopoly in February 2015, the company later changed its name to Megaphone in 2019. Originally, the organization created several prominent podcasts for well-known media outlets, such as BuzzFeed, The Wall Street Journal, and Vox. The company then shifted its focus to the technical aspects of podcasting – including hosting, advertising capabilities, and distribution – and discontinued its original content production.

Spotify already maintained a working relationship with Megaphone, utilizing its hosting infrastructure. This acquisition appears to be primarily driven by Megaphone’s advertising technology. According to a Spotify press release, “Spotify and Megaphone will jointly provide podcast creators with advanced resources to increase their revenue. This encompasses the possibility of choosing to monetize their content, connecting their dedicated audience with increased advertiser interest.”

Megaphone represents the newest addition to Spotify’s growing portfolio of podcast-related acquisitions, with costs varying from tens of millions to hundreds of millions of dollars. This purchase is expected to significantly contribute to Spotify’s ambition to establish itself as a leading force in the podcasting industry.

Spotify’s acquisition list also features content creators like Gimlet, The Ringer, and Parcast, as well as technology firms such as Anchor. In May, the company also secured exclusive rights to the highly successful Joe Rogan Experience for over $100 million – a deal that has reportedly generated internal debate among staff due to concerns about the show’s potentially contentious content.