Amazon acquires Wondery, the company behind podcasts such as’ Dirty John ‘,’ Dr. Death ”and“ The Shrink Next Door ”, while the race to grab parts of the audio market continues.
The deal, announced Wednesday, is the latest bet media companies are placing on audio – especially podcasts – as they look for new ways to differentiate themselves in an increasingly busy video market.
The deal valued Wondery, which began in 2016, at about $ 300 million. The person spoke about the condition of anonymity because the agreement was not disclosed.
Amazon calls the Wondery deal an “important moment to expand Amazon Music’s offering beyond music as listener habits develop.”
Podcasts have burst in popularity, and nearly a third of Americans said in early 2019 that they listened to at least one monthly. They offer media companies a fast-growing medium and an opportunity to expand their offerings without going through powerful interests, such as publishers and labels, when licensing for music and studios when licensing films.
Attempts to turn podcasting into its own celebrity universe have attracted people like Meghan Markle and Prince Harry. Wondery’s founder Hernan Lopez, a former Fox CEO, added Hollywood treats to his podcasts, filled with labels, trailers and billboards. “Dr. Death” is being developed into a television series on NBCUniversal’s Peacock streaming service.
Lopez told The New York Times last year that he “intended to create a business that could build on the podcasting of television and film skills, both in storytelling, production and marketing.”
Mr. Lopez will step down as CEO when the deal with Amazon is signed, and Jen Sargent, chief operating officer of Wondery, will take over management, according to a Amazon spokesman. In April, Mr. Lopez denies guilt on federal charges that accused him of it to bribe football officials in South America in exchange for broadcasting rights when he was an executive at Fox Sports.
Amazon spokesman said Amazon would not predict when the Wondery deal would close, saying it was subject to “customary closing conditions.”
The Times announced an agreement this year for the acquisition of Serial Productions, the company behind the hit podcast “Serial”. Spotify has announced a number of deals to extend beyond its streaming music industry, including an acquisition of The Ringer, the podcast company started by former ESPN journalist Bill Simmons. The deal is valued at about $ 250 million.
Investment bank LionTree has served as financial advisor to Wondery.