Spotify is on a quest to build the world’s leading audio platform.
The music streaming giant today announced it has acquired Gimlet Media, the podcast network behind featured shows like The Nod, and Anchor, a startup helping podcast creators record and distribute content.
“There are endless ways to tell stories that serve to entertain, to educate, to challenge, to inspire, or to bring us together and break down cultural barriers,” Daniel Ek, Spotify co-founder, and CEO said in a statement. “The format is really evolving and while podcasting is still a relatively small business today, I see incredible growth potential for the space and for Spotify in particular.”
The terms of the transactions were not disclosed, though Recode reports Spotify planned to purchase Gimlet for more than $200 million.
With the acquisition, the company will focus on helping podcasters establish and grow their audience while leveraging Gimlet’s podcast studio with dedicated intellectual property development, production, and advertising capabilities.
“Our podcast users spend almost twice the time on the platform, and spend even more time listening to music,” said Ek. “We have also seen that by having unique programming, people who previously thought Spotify was not right for them will give it a try.”