Spotify Planning to Buy Podcast Giant Gimlet Media for $200 Million
Being the music giant facing stiff competition from Google Play Music, Apple Music, and Amazon Prime Music, Spotify is planning to diversify their collection with the podcasts. According to the media reports, the company is planning to purchase Gimlet Media, a podcasting giant for nearly $200 million. Spotify is in management level talks about the purchase. If the company acquires Gimlet Media, then it’d be the first time they’ll ever buy another company as this will be the first purchase of the company.
Gimlet Media is one of the excellent podcast services on the internet. The company has recently raised the money and have a valuation of $70 million. The company has some of the most popular podcasts on the internet, including the limited run ones like “Homecoming,” which later became the show on Amazon Prime Videos with Julia Roberts. Also, “Reply All” and “Crimetown” as popular podcasts on the site. Being the popular one in the Podcast industry, it attracted the attention of Spotify as the company has already started to host the talk shows and podcasts.
To further develop the podcasting section, the company is in the advanced talks with Gimlet Media, but the deal is not finalized while writing this article. According to the media reports, Spotify is ready to pay three times more than Gimlet Media’s market valuation. Spotify has already started the Podcast section and opened the same for the individual artists to submit their informative podcasts under the beta program. Recently, iHeartMedia purchased Stuff Media for $55 million last month which is four times less than Spotify is ready to pay to Gimlet Media.