Spotify Acquires Megaphone

• Spotify Technology S.A. has entered into a definitive agreement to acquire podcast advertising and publishing platform Megaphone. The acquisition follows Spotify’s launch of Streaming Ad Insertion, an innovative podcast ad technology that delivers the intimacy and quality of traditional podcast ads with the precision and transparency of modern day digital marketing. Advertisers will now be able to activate across Spotify’s Original & Exclusive podcasts while scaling reach through the Megaphone Targeted Marketplace. For podcast publishers, the acquisition will unlock innovative tools that will help them earn more from their work. This includes the opportunity to opt-in to have their content monetized, matching their listeners with even greater demand from advertisers.

Following transaction close, Spotify will make Streaming Ad Insertion available to all podcast publishers on Megaphone, the first time this technology will be made available to third-parties. With Streaming Ad Insertion, podcast publishers will be able to offer more valuable podcast audiences to advertisers based on confirmed ad impressions.

“We are still in the early chapters of the streaming audio industry story, but it’s absolutely clear that the potential is significant,” said Dawn Ostroff, Chief Content & Advertising Business Officer, Spotify. “We look forward to Megaphone joining Spotify on our mission to accelerate smarter podcast monetization for advertisers and podcast publishers powered by a scaled audience and state-of-the-art technology.” Brendan Monaghan, CEO of Megaphone, commented, “We are incredibly excited to join Spotify to help advance the podcast medium for publishers and advertisers alike. We believe that Megaphone and Spotify’s shared value in innovation will drive the podcast ecosystem forward around the world.” The closing of the transaction is subject to customary regulatory approvals.