Spotify Said to Be in Talks to Buy Podcast Giant Gimlet for $200 Million
Music streaming service Spotify is reportedly in talks to buy Gimlet Media, a popular podcast company for $200 million.
Gimlet, a Brooklyn-based startup, is behind popular shows like Reply All and Crimetown. More recently, the company has moved toward TV production, including its scripted podcast Homecoming, which became an Amazon TV show starring Julia Roberts.
Recode reports that although the deal is in its advance stages, the purchase is not finalized just yet. Acquiring Gimlet would be the first time Spotify has bought a content company; furthermore, it would be the biggest podcast deal in the industry, passing Apple which has been a majority holder of podcasts.
In 2017, Gimlet raised $22 million in funding, and was said to be valued at around $70 million that August. Spotify would pay more than $200 million in cash for the company, according to the report.
Podcasts have seen rapid growth recently, bringing in an estimated $315 million in ad revenue in 2017, up 86% from the year prior, according to Interactive Advertising Bureau. True crime podcast Serial set a new record in September with nearly 3 million downloads.