Spotify is to buy podcast technology company Megaphone, in a deal worth $235m, as the Sweden-based platform continues to grow its podcast offer.
Megaphone was founded in 2016 by Panoply, a podcasting subsidiary of digital media company Slate. Its technology will help Spotify to develop targeted advertising.
Spotify is using its growing podcast portfolio to grow its subscription revenue. The company now offers 1.9m podcasts with recent launches including The Michelle Obama Podcast. This latest acquisition follows previous deals for Gimlet Media, Anchor, The Ringer and Parcast. No wonder valuations for podcast companies are rising fast.
