Spotify is going into the podcast business and is expanding outside of streaming music.
Spotify is best known as a music-streaming service — and now it’s placing a big new bet on building a podcasting empire.
On Wednesday, Spotify announced all-cash deals to acquire Gimlet Media, the podcast producer whose shows include “Homecoming,” “StartUp” and “Reply All,” and Anchor, which offers tools for podcast creation, publishing, and monetization.
Terms of the deals were not disclosed. Spotify is paying $230 million for Gimlet, per a Recode report. The transactions are expected to close in the first quarter of 2019 and subject to usual closing conditions.
Spotify chief Daniel Ek is looking for more M&A: The company disclosed that it plans to acquire more podcasting companies, pegging total spending of $400 million-$500 million on multiple acquisitions in 2019.
“These acquisitions will meaningfully accelerate our path to becoming the world’s leading audio platform, give users around the world access to the best podcast content, and improve the quality of our listening experience as well as enhance the Spotify brand,” Ek said in announcing the acquisitions. “We are proud to welcome Gimlet and Anchor to the Spotify team, and we look forward to what we will accomplish together.”