Gimlet Media, a US-based podcast publisher backed by marketing group WPP, has entered talks with music streaming platform Spotify over an acquisition sized at $200m or more, Recode has reported.
Founded in 2014 as American Podcasting Corporation, Gimlet produces and hosts narrative and scripted podcasts, with the latter often boasting high-profile actors such as David Schwimmer and Oscar Isaac.
Gimlet also operates a branded division that creates sponsored content, and has moved into television production with adaptations of two of its podcasts: psychological thriller Homecoming and StartUp, which focuses on co-founder Alex Blumberg’s journey launching the company.
Spotify’s interest in Gimlet would feed into an ongoing drive by the corporate to diversify its core offering with the addition of non-music content, and would mark the first time it has purchased a content producer.
Gimlet has secured $27m in funding to date including $5m from WPP in September 2017. It had raised $15m in a series B round led by growth equity firm Stripes Group and backed by Cross Culture Ventures and Betaworks and Emerson Collective the previous month.
Diversified conglomerate Graham Holdings had already invested $5m to lead the company’s $6m series A round in 2015, participating together with Chris Sacca, the founder of venture capital firm Lowercase Capital.
