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Amazon acquires Wondery, the company behind podcasts such as “Dirty John,” “Dr. Death ”and“ The Shrink Next Door ”, as the race to capture audio market share continues.
The deal, announced on Wednesday, is the latest bet media companies are placing on audio – podcasts in particular – as they seek new ways to differentiate themselves in an increasingly crowded video market by streaming.
The deal values Wondery, which began in 2016, at around $ 300 million, a person briefed on the matter said. The person spoke on condition of anonymity as the terms of the deal were not disclosed.
Amazon called the Wondery deal “a crucial time to expand Amazon Music’s offering beyond music as listeners’ habits change.”
Podcasts have exploded in popularity, with nearly a third of Americans saying in early 2019 that they listened to at least a month. They offer media companies fast growing support and the ability to expand their offerings without having to go through powerful interests, such as publishers and labels, when licensing music, and studios when licensing. film licenses.
Efforts to turn podcasting into its own celebrity universe have attracted figures like Meghan Markle and Prince Harry. Wondery founder Hernan Lopez, a former Fox executive, has added the Hollywood treatment to his podcasts, filled with slogans, trailers and billboards. “Dr. Death ”is set to become a television series on NBCUniversal’s Peacock streaming service.
Mr Lopez told the New York Times last year that he had “decided to start a business that could build on podcasting skills from television and film, both in storytelling and production, as well as in marketing.
Mr. Lopez will step down as chief executive when the deal with Amazon is finalized, and Jen Sargent, chief operating officer of Wondery, will take the lead, according to an Amazon spokesperson. In April, Mr. Lopez pleaded not guilty to federal charges accusing him of bribing football officials in South America in exchange for broadcast rights when he was an executive at Fox Sports.
Amazon would not “predict” when the Wondery deal was due to close, the Amazon spokeswoman said, noting that it was subject to “customary closing conditions.”
The Times announced an agreement this year to acquire Serial Productions, the company behind the successful “Serial” podcast. Spotify has announced a series of deals to expand beyond its music streaming business, including an acquisition of Ringer, the podcast company created by former ESPN reporter Bill Simmons. This deal is valued at around $ 250 million.
LionTree Investment Bank acted as financial advisor to Wondery.
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