One of the last major independent podcast networks in the US will soon become an Amazon subsidiary.
On Wednesdays, the e-commerce giant announced that it had acquired Wondery, the podcast publisher best known for his successful series like “Dirty John”, “Dr. Death,” “Business Wars” and “The Shrink Next Door.”
“Amazon Music launched podcasts in September 2020, and together with Wondery, we hope to accelerate the growth and evolution of podcasts by bringing creators, hosts, and immersive experiences to even more listeners around the world, just as we do with music,” the company said in the statement. “This is a critical time to expand Amazon Music’s offering beyond music as listeners’ habits evolve.”
Although Amazon initially did not disclose the terms of the long-awaited deal, a report in the Wall Street Journal speculated that Amazon could have raised Wondery about $ 300 million – an amount that would far exceed the price Spotify paid when it bragged up Gimlet Media back in 2019.
Another source speaking to the Journal suggested Wondery was on track to reach annual sales of more than $ 40 million in 2020, with about 75% of that profit from advertising.
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The Spotify deal seems like the brass ring Amazon is aiming for, especially given that the former company’s foray into podcasts was so successful that it reportedly already considering launching a subscribers-only tier.
While Amazon did not set out a closing date for the deal, it noted in a blog post that the experience of listening to Wondery’s content would not change for users in the short term and would use its resources to “continue to attract more customers to streaming as we expand the selection and ensure that we are a destination where our customers can find, discover and listen to the creators and artists they like. “