Amazon is acquiring Wondery, the company behind podcasts like “Dirty John”, “Dr. Death ”and“ The Shrink Next Door ”, while the race to grab parts of the audio market continues.
The deal, announced on Wednesday, is the latest bet that media companies are placing on audio – podcasts in particular – while looking for new ways to differentiate themselves in an increasingly crowded video streaming market.
The deal values Wondery, which started in 2016, at about $ 300 million, said an informed person on the matter. The person spoke on condition of anonymity because the terms of the deal were not disclosed.
Amazon called the Wondery deal “a pivotal time to expand Amazon Music’s offering beyond music as the listener’s habits evolve.”
Podcasts are exploding in popularity, with nearly a third of Americans saying in early 2019 that they listened to them at least once a month. They offer media companies a means of rapid growth and an opportunity to expand their offerings without having to go through powerful interests, such as publishers and record labels, when licensing music, and studios, when licensing films.
Efforts to turn podcasting into its own celebrity universe have attracted Meghan Markle and Prince Harry. Wondery founder Hernan Lopez, a former Fox executive, added Hollywood treatment to his podcasts, filled with slogans, trailers and billboards. “Dr. Death ”is scheduled to be developed on a television series on NBCUniversal’s Peacock streaming service.
Mr. Lopez told The New York Times last year that he had “decided to create a company that he could develop by bringing the skill set of television and film to podcasting, both in narrative and production, and in marketing.”
Lopez will step down as chief executive when the deal with Amazon closes, and Jen Sargent, chief operating officer at Wondery, will take over management, according to an Amazon spokeswoman. In April, Mr. Lopez pleaded not guilty to the federal charges that accused him of bribing football officials in South America in exchange for broadcast rights when he was a Fox Sports executive.
Amazon would not “predict” when the Wondery deal would close, said the Amazon spokeswoman, noting that it is subject to “customary closing conditions”.
The Times announced an agreement this year to acquire Serial Productions, the company behind the hit podcast “Serial”. Spotify has announced a series of deals to expand beyond its music streaming business, including the acquisition of Ringer, the podcast company started by former ESPN journalist Bill Simmons. This deal is valued at about $ 250 million.
The investment bank LionTree served as a financial advisor to Wondery.