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Spotify Technology S.A.

Acquisitions

Spotify Acquisitions

3

Major Deals Covered

$698M

Disclosed Deal Value

What are Spotify's biggest acquisitions?

Spotify's largest disclosed acquisition here is Gimlet Media and Anchor for $340M in 2019. This page covers 3 major deals from 2019 to 2022, each with its price where disclosed and the reason behind it.

Major deals covered
3
Largest deal
Gimlet Media and Anchor ($340M)
First deal
2019
Most recent
2022
CompanyYearPricePurpose
Gimlet Media and Anchor2019$340.0MSpotify acquired podcast studio Gimlet Media and podcast-creation platform Anchor in 2019 to move beyond licensed music into owned podcast content and creator distribution tools, part of a roughly $400-600 million podcast-investment push that year.
Megaphone2020$235.0MSpotify acquired podcast advertising technology company Megaphone for about $235 million to strengthen podcast ad serving, targeting, and monetization infrastructure.
Findaway2022$123.0MSpotify acquired audiobook distribution platform Findaway for about $123 million to expand into audiobooks, a category with better unit economics than licensed music streaming.
What companies has Spotify bought?
Major acquisitions by Spotify documented here include Gimlet Media and Anchor (2019), Megaphone (2020) and Findaway (2022).
What is Spotify's most recent acquisition?
The most recent Spotify acquisition documented here is Findaway, in 2022, for $123M.

Findaway

2022

$123M

Why

Spotify acquired audiobook distribution platform Findaway for about $123 million to expand into audiobooks, a category with better unit economics than licensed music streaming.

Impact

Findaway's relationships with publishers and audiobook distribution infrastructure let Spotify launch audiobook access for subscribers without building those publisher relationships from scratch.

Outcome

Audiobooks became part of Spotify's Premium subscription value proposition, helping justify subscription price increases alongside music. The Findaway deal also gave Spotify direct relationships with independent authors and smaller publishers who had previously relied on Findaway's distribution network to reach retailers like Audible's competitors.

Megaphone

2020

$235M

Why

Spotify acquired podcast advertising technology company Megaphone for about $235 million to strengthen podcast ad serving, targeting, and monetization infrastructure.

Impact

Megaphone's technology let Spotify sell targeted, dynamically inserted ads across its growing podcast catalog rather than relying on static, pre-recorded sponsorships.

Outcome

Megaphone's ad-serving technology became core infrastructure behind Spotify's podcast advertising revenue growth. Megaphone's dynamic ad-insertion technology also let Spotify sell the same podcast episode with different ads to listeners in different countries, a capability licensed music deals never offered.

Gimlet Media and Anchor

2019

$340M

Why

Spotify acquired podcast studio Gimlet Media and podcast-creation platform Anchor in 2019 to move beyond licensed music into owned podcast content and creator distribution tools, part of a roughly $400-600 million podcast-investment push that year.

Impact

Gimlet gave Spotify original scripted and narrative podcast IP, while Anchor gave independent creators free tools to record and distribute podcasts directly through Spotify, seeding the platform's creator base.

Outcome

The acquisitions anchored Spotify's multi-year pivot toward podcasts and, later, audiobooks as a way to diversify revenue beyond music-licensing royalties. Spotify later wrote down much of the value of these podcast-studio investments as it shifted from producing expensive exclusive shows toward an open, ad-supported podcast marketplace strategy after 2023, illustrating how the company's podcast approach evolved through trial and error rather than a single fixed plan from the outset.

Spotify Technology S.A.'s Growth & Acquisition Strategy

Spotify is growing along three lines: pricing and plan mix (price increases lifted Premium ARPU 7.4% at constant currency in Q2 2026), new formats (video podcasts, audiobooks in Premium, and partner video such as the September 2026 Genius series deal), and fan products such as Reserved, a Live Nation-backed early ticket access feature launched in the US in 2026. Management says it will keep a high bar for investments while reinvesting in AI-driven product development.

How Spotify Technology S.A. Makes Money

Spotify runs a freemium model. Premium subscriptions (individual, Duo, Family, Student and other plans) generate about 90% of revenue: in Q2 2026 Premium revenue was ~$4.89 billion (EUR4.331 billion) against ~$504 million (EUR446 million) of ad-supported revenue. The free tier monetises through audio, video and podcast advertising and acts as the main funnel into paid plans. The largest cost is royalties paid to labels, publishers and other rights holders, so profit depends on raising ARPU (EUR4.89 per month in Q2 2026), marketplace programmes such as Discovery Mode, and higher-margin formats such as podcasts and audiobooks.

Spotify Acquisitions FAQ

What was the significance of Spotify's 2014 acquisition of The Echo Nest?

In March 2014, Spotify acquired music intelligence and machine-learning startup The Echo Nest for approximately $100 million. The Echo Nest analyzed musical acoustic attributes and cultural web data, providing the foundational algorithmic recommendation engine that powered Discover Weekly, Release Radar, and Spotify's personalized playlists.

How much did Spotify pay to acquire podcast studio Gimlet Media in 2019?

In February 2019, Spotify acquired acclaimed narrative podcast studio Gimlet Media (creators of Homecoming, Reply All, and StartUp) for approximately $230 million in cash. The deal signaled Spotify's aggressive multi-billion-dollar entry into original and exclusive podcast content.

Why did Spotify acquire Anchor in 2019 and what did it achieve?

In February 2019, Spotify acquired Anchor for over $150 million. Anchor was the world's leading free podcast creation, recording, hosting, and monetization tool. The acquisition powered Spotify for Podcasters, democratizing podcast production and causing hundreds of thousands of new creators to publish directly onto Spotify.

How much did Spotify pay to acquire The Ringer in 2020?

In February 2020, Spotify acquired sports and pop-culture media network The Ringer, founded by Bill Simmons, for approximately $196 million in cash plus performance-based earnouts. The acquisition brought over 30 popular podcast feeds (The Bill Simmons Podcast, The Rewatchables, Ryen Russillo) into Spotify's portfolio.

What was the acquisition of podcast ad-tech platform Megaphone in 2020?

In November 2020, Spotify acquired podcast technology and advertising platform Megaphone for $235 million. Megaphone provided dynamic ad-insertion capabilities and enterprise hosting, forming the technical infrastructure for the Spotify Audience Network (SPAN).

Why did Spotify acquire Findaway in 2022 and how did it launch audiobooks?

In June 2022, Spotify completed the acquisition of Findaway, a global leader in digital audiobook distribution with a catalog of hundreds of thousands of titles. Findaway gave Spotify immediate publisher relationships and audiobook distribution infrastructure to launch audiobooks to Premium users in 2023.

What was Spotify's acquisition of AI voice developer Sonantic in 2022?

In June 2022, Spotify acquired Sonantic, an AI voice synthesis platform that creates hyper-realistic, emotionally expressive synthetic human voices. Sonantic's technology was used to power the voice of "X" (Xavier Jernigan) in Spotify's popular AI DJ feature.

Did Spotify acquire any early music social or radio startups?

Yes. Early acquisitions included Tunigo in 2013 (curated music playlists), Sometrics in 2011 (virtual currency), Seed Scientific in 2015 (data science consulting), and Soundwave and Cord Project in 2016 (social music sharing and voice messaging).

What was the acquisition of Parcast in 2019?

In April 2019, Spotify acquired true-crime and mystery podcast studio Parcast for approximately $55 million. Parcast produced serialized crime and history shows, which were later consolidated into Spotify Studios during the 2023 restructuring.

How did Spotify acquire live-audio platform Betty Labs (Locker Room)?

In March 2021, during the pandemic-era live audio craze sparked by Clubhouse, Spotify acquired Betty Labs (creator of sports audio app Locker Room) for roughly $67 million. Rebranded as Spotify Live, the standalone service was shuttered in 2023 as consumer interest waned.

How has Spotify's M&A strategy evolved following the 2023 restructuring?

Following the multi-million-dollar write-downs and consolidation of studios Gimlet and Parcast in 2023, Spotify pivoted away from expensive, exclusive content studio takeovers. Current M&A focuses on high-margin ad tech, algorithmic AI capabilities, and scalable creator infrastructure.

Did Spotify ever acquire a music hardware company?

Rather than acquiring a hardware maker, Spotify developed its own dedicated voice-controlled in-car media player called the "Car Thing." After a limited release in 2021, Spotify discontinued the hardware in 2022, taking a €31 million charge and reinforcing its commitment to a pure-software model.

Related M&A Histories

Compare corporate acquisition records, deal values, and strategic targets

Content is for informational purposes only. Not financial advice. Data sourced from SEC filings, annual reports, and public records. See our full disclaimer and methodology.