After releasing podcasts on its streaming service, Amazon continues to invest in the business. The company has entered into an agreement to purchase the podcast network Wonderly and hopes to compete with Spotify for original content. The value of the deal was not officially disclosed, but according to new York Times, Is $ 300 million.
As a comparison, Spotify invested $ 200 million in 2019 to purchase podcast network Jimlet Media. In a statement about the deal, Amazon indicated that it intended to leverage Wondersey’s experience in producing narrative podcasts such as Dirty John, Dr. Death, and The Shrink Next Door.
“Together with Wonder, we hope to accelerate the growth and development of podcasts, bringing immersive experiences to creators, hosts, and more listeners around the world, just as we do with music. It’s Beyond Music at Amazon This is an important moment to expand the music offering as listener habits develop, ”the company said.
With the deal, CEO Hernan Lopez, who founded Wondari in 2016, will be replaced by the company’s chief operating officer, George Sargeant. A former Fox executive, Lopez was the target of an indictment by the United States Department of Justice, which hinted at bribing Conmbol officials in broadcast deals for the Libertadores and World Cup qualifiers. Lopez denied the allegations.
Amazon promises not to ban podcasts
Amazon said listeners of the Wonder Podcast would not be affected after the deal was completed. According to the company, the content will be available on various platforms. Instead, the idea of purchase is for the manufacturer to start publishing even more material.
In the statement, Amazon did not anticipate when the deal would conclude and merely stated that it was subject to normal closing conditions.