What you need to know
- Spotify announced that it is acquiring Findaway.
- Spotify plans to "supercharge" its audiobook distribution platform to "revolutionize the audiobook space."
- The acquisition is expected to close by the end of the year.
Spotify is expanding its audio prowess with the purchase of Findaway, a leading audiobook platform. The platform is used for both audiobook distribution and self-publishing for independent authors.
The move represents the first significant step into a new endeavor for Spotify, which has dominated the audio space with music and podcasts on the best Android phones. Spotify's Chief Research & Development Officer, Gustav Söderström, said on Thursday that the acquisition will help accelerate Spotify's plans to break into audiobooks.
"We're excited to combine Findaway's team, best-in-class technology platform, and robust audiobook catalog with Spotify's expertise to revolutionize the audiobook space as we did with music and podcasts," he says.
Spotify has been working to boost its offerings in the audio space. Earlier this year, Spotify launched its paid subscription platform for creators to help monetize their podcasts, leveraging its ownership of Anchor, which it acquired in 2019. The company will likely leverage its latest acquisition in a similar manner.
This also isn't the first time Spotify has toyed with audiobooks, offering an exclusive audio experience for Harry Potter and the Philosopher's Stone in 2020. Earlier this year, Spotify launched its first collection of audiobooks in the form of classics read by celebrities.
Spotify did not disclose the financial details of the acquisition but noted that the audiobook industry is expected to grow to $15 billion by 2027, and the company obviously wants to be at the forefront of that growth. Spotify hopes to leverage its audio personalization and discovery expertise to build on Findaway's platform and drive innovation in the audiobook industry.
The deal is expected to close this quarter, pending regulatory approval.
