Music streaming platform Spotify confirmed on Wednesday it has paid an undisclosed sum to acquire Anchor, a US-based podcasting app developer backed by internet and technology firm Alphabet.
Founded in 2015, Anchor has developed a platform that enables users to create and monetise podcasts and other audio content directly from their smartphones.
The deal came days after Spotify acquired Gimlet Media, a US-based podcast publisher backed by marketing group WPP, in a deal that valued the company at $200m or more, according to Recode.
Gimlet’s podcast studio and Anchor’s podcast creation tools will both be incorporated into Spotify’s existing platform to help the company diversy further into non-musical content. The corporate told TechCrunch it plans to spend $400m to $500m more on strategic acquisitions this year.
Anchor had raised approximately $15m in funding, closing a $10m series A round in October 2017 led by Alphabet unit GV that included over-the-top media company Chernin Group, venture capital firms Accel, Betaworks Ventures, Eniac Ventures and Homebrew, and private investors Craig Kallman and Nir Eyal.
The company raised $1.6m in a 2016 round co-led by SV Angel and Eniac Ventures and backed by Acequia Capital, Betaworks, CrunchFund, Homebrew, Quire and various angel investors.
Accel subsequently led a $2.8m round for the company in March 2017, investing alongside Chernin Group, Omidyar Network, Eniac Ventures and Mick Batyske.
Daniel Ek, co-founder and chief executive of Spotify, said: “These acquisitions will meaningfully accelerate our path to becoming the world’s leading audio platform, give users around the world access to the best podcast content, and improve the quality of our listening experience as well as enhance the Spotify brand.”
A subsequent regulatory filing indicated the price Spotify paid was approximately $110m.