Spotify Technology SA has entered into definitive agreements to acquire two podcast companies as it looks to position itself as the most prominent producer of podcasts and the leading platform for podcast creators.
Upon completion of the two deals, the music streaming service will acquire Gimlet Media, an independent podcast content producer, and Anchor, which is known for podcast creation, publishing and monetization services.
Daniel Ek, co-founder and CEO of Spotify, said: "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."
Anchor was founded in New York in 2015 and powers more than 40% of the world's new podcasts, while Gimlet began life in 2014 and is behind hit series such as StartUp, Reply All, Homecoming and Mogul. Gimlet's in-house advertising agency, Gimlet Creative, produces official podcasts for brands including eBay, Tinder, Gatorade and Mastercard.
Gimlet Media co-founders Alex Blumberg and Matt Lieber remarked: "The medium of audio is uniquely great at creating human connection and understanding. We are thrilled that Gimlet is joining Spotify to do that at a global scale, on the platform and beyond."
Michael Mignano, CEO of Anchor, added: "We look forward to continuing to empower creators all over the world to build an audience, generate revenue and, most importantly, have their voices heard."
According to Spotify, both transactions will be expected to close in 1Q19, subject to customary closing conditions.