Spotify paid $123 million for audiobook company Findaway

Spotify’s purchase of Findaway, a platform that lets users create, distribute and monetize their own audiobooks, cost it 117 million euros, or about $123 million, the company revealed today. today. Findaway will provide the infrastructure for what will become the third pillar of Spotify’s business. The streaming service first announced the acquisition last November.

“We believe audiobooks, in their many different forms, will be a huge opportunity,” Spotify CEO Daniel Ek told investors during a presentation last month. “And just like we did in podcasting, expect us to play to win.”

Spotify’s acquisition of Findaway is reminiscent of when it bought Anchor in 2019. Like Anchor, Findaway is focused on DIY content and could potentially bring a whole new category of creators to the streamer. Fittingly, Spotify’s audiobook business operates under Anchor co-founder Nir Zicherman.

The audiobook feature will be coming to Spotify “pretty imminently,” Ek said Wednesday. Executives said the service will operate differently than the industry’s dominant player, Amazon’s Audible. Audible subscribers pay $14.95 per month for one credit per month, one credit worth one book. It’s unclear whether premium subscribers will get unlimited access to audiobooks, but content and advertising manager Dawn Ostroff said last month there would be an ad-supported tier.

Ek is confident that audiobooks will provide the kind of income investors are looking for, with profit margins north of 40%. With Findaway’s nine-figure price tag, hopefully he’ll be right. Investors were disappointed that the company’s big investments in podcasting had yet to pay off.

Spotify also revealed pricing for a few other major acquisitions today. Podsights and Chartable cost the company €83 million (about $94 million at the time) and Sonantic cost €91 million (about $96 million). No price tag for Heardle yet, though.


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