Spotify Agrees to Buy Podcast Ad-Tech Company for $235 Million
The acquisition, called Megaphone, creates tools for podcast advertisers.
Spotify Technology SA agreed to acquire Megaphone, which creates tools for podcast advertisers, in a deal that values the acquisition at $235 million.
Founded by the online news company Slate, Megaphone connects podcast publishers such as Vox and ESPN with networks of advertisers. Spotify will use Megaphone’s network and tools to offer its advertising technology to thousands of additional podcasts.
After building up its podcasting operations, Spotify is now trying to line up more advertising — helping it justify the investment in a still-nascent genre. The music streaming giant has now spent more than $800 million acquiring podcast firms, including Gimlet Media, Anchor and the Ringer, aiming to decrease its reliance on record companies.