Music streaming service Spotify is in “advanced” talks to acquire startup podcast network Gimlet Media, reports Recode. If a deal were made, it would give the streaming service a boost as it diversifies its offerings beyond music.
According to Recode, Spotify offers to pay more than $ 200 million for the company. Gimlet Media, which was founded by Alex Blumberg (a former producer of This American life) and Matthew Lieber in 2014, was one of the leading figures in the growing podcasting market. It produces a wide range of shows, from business series Start, to the real detective series City of crime, to narrative dramas like Back home, Sandra, and The horror of Dolores Roach. Recently, Gimlet has expanded his focus from podcasting to film and television, as evidenced by his recent deal with Amazon to transform Back home in a series.
As the world of podcasting started to explode, Spotify became increasingly interested in trying its hand in the market. Hot podNick Quah noted earlier this year that the streaming service has worked to develop its strategy around podcasting, and stressed that the company has made the market a priority for the coming year. Quah observed that Spotify would likely benefit from creating its own content, as users who came to the platform would be likely to stick around for its other offerings, and it would benefit from the ads it could run on podcasts. Spotify has already made deals to bring original shows, like that of Amy Schumer 3 girls, 1 Keith, and broadcasts certain programs, like the next season of City of crime, exclusively on its platform.
Acquiring a dedicated studio like Gimlet would allow Spotify to continue to develop its own lines of original content and intellectual property, benefiting not only from additional users and ad revenue, but the tracking effect of everything. what this intellectual property could be turned into down the road. Additionally, it could keep its users locked to its own platform, rather than having them listen to podcasts on other platforms, like Apple Podcasts or Stitcher.