Spotify and Gimlet Media are currently in discussion about a possible acquisition, at least according to anonymous people familiar with the matter.
If the plan pushes through, this will be the first time Spotify purchases another company that produces original content.
Spotify And Gimlet In 'Advanced Talks'
According to Recode's Peter Kafka in a report published last Friday, Feb. 1, Spotify is now in ''advanced talks" with Gimlet Media. The music streaming company is said to be planning to shell out more than $200 million to acquire the podcast maker. If successful, the deal will be one of the biggest acquisitions made in the history of podcast industry.
Gimlet Media is a start-up based in Brooklyn. It produces original content for advertisers such as Gatorade, and it's the company that created popular podcasts Reply All and Crimetown. It's also worth mentioning that the Amazon series Homecoming — starring Julia Roberts — started as a scripted podcast in Gimlet.
The podcast maker is currently valued at $70 million after it raised money around two years ago through funding.
Both Spotify and Gimlet are yet to comment on the reports.
More Than Just Music Streaming
Spotify, with over 200 million users, has been trying to go beyond music streaming, and Gimlet's pool of popular content could bring lots of opportunities to the table once the deal closes.
Podcasts aren't something new for Spotify, though. The company has been featuring podcast content for quite some time now. Last year, it launched a new format that combines visual elements with podcasts and other audio content, including ones from Gimlet. Spotify also tapped comedian Amy Schumer and rapper/broadcaster Joe Budden for exclusive podcast content, which premiered in June and September 2018, respectively.
Spotify previously went for video content as well, a move that proved to be unsuccessful for the company.