Spotify is buying podcast ad startup Megaphone for $235 million

With billions of dollars in war chest, Spotify announced Tuesday that it is buying Washington D.C.-based Megaphone for $235 million. Megaphone offers the technology for podcast publishers and advertisers seeking targeted slots on podcasts. It offers podcast hosting, distribution, and ad-insertion tools for podcast publishers like ESPN and the Wall Street Journal, and advertisers can use the company’s technology to find audiences across the podcast content of those publishers.

Spotify has been on a buying spree lately, striking deals for shows from those including Joe Rogan, Kim Kardashian, and Michelle Obama and buying companies like The Ringer and Gimlet Media.

In a post on Twitter, Megaphone said this: “Did you hear? We’re joining the @Spotify family! Thrilled for our people, podcast publishers and advertisers and we look forward to integrating with Spotify to help grow this amazing industry. Read more on Spotify For the Record:”

Did you hear? We're joining the @Spotify family! Thrilled for our people, podcast publishers and advertisers and we look forward to integrating with Spotify to help grow this amazing industry. Read more on Spotify For the Record: https://t.co/ka9LrarYR8

— Megaphone by Spotify (@MegaphonePods) November 10, 2020

Founded in 2009 by Andy Bowers and Brendan Monaghan, Megaphone builds the technology that allows podcast publishers to achieve the most from their work, and brand advertisers to connect with passionate audiences. Megaphone’s platform is used by over 20,000 publishers and advertisers.

Spotify started in October 2008 as a startup Spotify AB in Stockholm, Sweden. Spotify is a commercial music streaming service that provides restricted digital content from a range of record labels and artists. The company also provides a freemium service; basic features are free with advertisements or limitations.

Spotify is a commercial music streaming service that provides restricted digital content from a range of record labels and artists. Users can browse through the interface by artist, album, genre, playlist, record label, and direct searches.

Spotify also enables individuals to create, share, and edit playlists with other users. If users want recommendations, they can integrate their system with Last.fm, an application that provides music recommendations based on listening history. The radio feature installed in Spotify creates random playlists for its users that are related to preferred artists.