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Amazon.com Inc. said it has agreed to acquire podcast producer Wondery, the online retail giant’s latest initiative to increase its audio offerings.
Amazon did not disclose the purchase price. The Wall Street Journal previously reported that the negotiations valued Wondery at more than $ 300 million.
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Founded in 2016, Wondery is one of several audio startups that have flourished in recent years as the podcast has won over advertisers and listeners. Wondery is known for his narrative-based podcasts that apply cinematic sound design to nonfiction stories.
Amazon said the acquisition of Wondery – creator of real-life crime shows like “Dr. Death”, “Dirty John” and “The Shrink Next Door” – would allow the company to deepen its podcast offerings.
Wondery podcasts will continue to be available to listeners on a variety of platforms for free when the deal closes, Amazon said. Wondery will join Amazon Music, the company’s division that offers podcasts and music streaming to listeners.
Several other podcast startups have been acquired in recent years, as technology, radio and news companies search for new listeners. Spotify Technology SA recently bought Gimlet Media, Ringer and Parcast, expanding its podcast production and monetization capabilities.
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Dow Jones & Co., editor of the Journal, has a content partnership with Spotify’s Gimlet unit.
Last year, the radio company Entercom Communications Corp. bought the podcasters Pineapple Street Media and Cadence13. And earlier this year, the New York Times announced the acquisition of Serial Productions, maker of the hit podcast “Serial”.
Wondery chief executive Hernan Lopez will leave the company after the deal is closed, according to people familiar with the matter. Jen Sargent, the company’s chief operating officer, will take over managing Wondery after Lopez’s departure, people said.
After the deal was closed, Lopez will focus on the Hernan Lopez Family Foundation, a new initiative aimed at combating systemic prejudice and racism, people said.
In April, Mr. Lopez was accused of participating in an alleged scheme to pay millions of dollars in bribes to football officials in exchange for broadcast rights when he was a Fox Sports executive. Mr. Lopez denied the charges. A lawyer for Lopez, Matthew Umhofer, told the Journal earlier this year that the US prosecution “does not claim anything remotely inappropriate”.
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The subsidiary where Lopez worked, Fox International Channels, was absorbed by Walt Disney Co. in 2019. Amazon did not comment on the allegations against Lopez. Fox said in a 2017 trial that it did not know or approve any bribes. Fox declined to comment. Disney did not immediately respond to a request for comment.
News Corp. parent of the Journal and Fox Corp., parent of Fox Sports, share common ownership.
Wondery funders include Waverley Capital, Advancit Capital, Lerer Hippeau and Greycroft. Its last round of financing, in June 2019, valued the company at more than $ 100 million, the newspaper reported. It is on track to increase its revenue to more than $ 40 million this year.
LionTree LLC advised Wondery about the deal.