Nov. 10 (UPI) — Media streaming giant Spotify will buy podcast and publishing platform Megaphone for more than $230 million, the company said Tuesday.
The deal is worth about $235 million, CNBC reported.
Spotify has recently bought shows that involve former first lady Michelle Obama, reality star Kim Kardashian and commentator Joe Rogan and companies including The Ringer and Gimlet Media.
“We believe that streaming audio, including music and podcasts, is poised to be the next great frontier for listeners, creators and advertisers,” Spotify said in a statement.
“That’s why today, we’re excited to announce Spotify’s acquisition of Megaphone, one of the world’s leading podcast advertising and publishing platforms.”
Spotify said it plans to create a “Streaming Ad Insertion” tool for all podcast publishers with Megaphone technology. The tool will make “targetable” ads that will be interactive and measurable for podcasters to see their effectiveness.
Megaphone CEO Brendan Monaghan said his company started as a Slate magazine political website and became an immediate hit.
“I saw how important this medium was and how people really made shows a part of their lives,” Monahan said in a statement. “It really helped fuel the launch of Megaphone.”
Spotify Vice President of Global Ad Business Jay Richman said there’s a perception that podcasting is still a niche medium, but he insists that it’s growing and may be the future of streaming.
“This has been changing a lot in the last couple of years and even more recently as podcast consumption continues to increase,” he said. “The big reason, though, is the maturity of the ad technology.”