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Spotify buys audiobook platform Findaway for $123 million

Image Credit: Good e-Reader

Spotify closed the deal for audiobook platform Findaway in June in a bid to add a third leg to the Spotify audio stool.

Findaway is a platform that allows users to create, distribute and monetize their own audiobooks, reports The edge.

In a 2019 announcement, Spotify announced its desire to become the world’s leading audio platform. True to this will, the company has ventured into podcasting with acuisitions from companies like Anchor and Gimlet.

Now, Spotify has entered into a “definitive agreement” to acquire Findaway, a leading digital audiobook distribution company.

Spotify revealed yesterday (7/31) that it had purchased Findaway for $123 million to provide critical infrastructure for integrating audiobooks into the Spotify platform.

Spotify CEO Daniel Ek said the feature for audiobook content will be coming to Spotify “pretty imminently”. Additionally, the company said its service will operate differently than Amazon Prime, which is currently the main audiobook platform.

For example, Audible subscribers pay $14.95 per month for a monthly credit, and that credit earns them a book.

We don’t yet know if Spotify premium subscribers will have unlimited access to audiobooks. However, Content and Advertising Manager Dawn Ostroff has indicated that there will be an ad-supported tier.

It’s Spotify’s ambition to be the destination for all things audio for both listeners and creators. The acquisition of Findaway will accelerate Spotify’s presence in the audiobook space and help us achieve this ambition faster.

Gustav Söderström, Director of Research and Development at Spotify

While investors are disappointed that Spotify’s investments in podcasting are yet to pay off, Spotify is still looking to find new avenues to fulfill its dream of being the world’s leading audio platform.

A notable recent acquisition is that of Heardle. Spotify bought the music quiz for the purpose of utilizing the music discovery element of the platform itself.

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