Amazon.com Inc., in a deeper push into podcasting, has agreed to acquire Wondery, a podcasting company. One of the last major independent podcast companies, Wondery, was sold for an undisclosed sum, and according to a Verge report, Amazon is set to take on Swedish music streaming giant, Spotify, with this acquisition.
“We’re pleased to announce that Wondery has signed an agreement to join Amazon Music. Wondery is an innovative podcast publisher with a track record of creating and producing top-rated podcasts that entertain and educate listeners, including ‘Dirty John,’ ‘Dr. Death,’ ‘Business Wars,’ and ‘The Shrink Next Door.’” the Seattle-based retail and media giant said in a statement Wednesday.
In September, Bloomberg News first reported that the podcasting company was exploring a sale and the Wall Street Journal (WSJ) informed earlier this month that Amazon was leading the race at a valuation of around $300 million. Apple and Sony each reportedly held talks about potentially acquiring the company. Wondery had sought a price of $300 million to $400 million, sources familiar with the matter have said.
On starting out as an online seller of books, Amazon has already cemented a dominant position in audiobooks through its Audible division and launched podcasts earlier in September. Emerging as one of the biggest backers of original audio shows, Amazon has commissioned programs from best-selling authors and celebrities.
Over the last two years, the Swedish music streaming giant, Spotify Technology SA, has been the most aggressive buyer of podcasting companies, however, they decided not to bid on Wondery.
Founded in 2016 by former TV executive Hernan Lopez, Wondery is capitalizing on a wave of deals in the podcasting industry. Spotify spent hundreds of millions to snap up companies like Ringer and Gimlet Media, while Sirius XM Holdings Inc. acquired Stitcher.
Wondery is known to produce some of the most popular podcasts over the past few years. Revenue is expected to be on the higher side of $40 million in 2020, a person familiar with the matter has said, according to Bloomberg.
