Spotify is acquiring digital audiobook distribution and services company Findaway. The music streaming giant didn’t disclose the financial terms of the deal but said it expects the deal to close before the end of this year, “subject to regulatory review and approval.”
According to Spotify, the audiobook industry is currently valued at $3.3 billion but is expected to grow to $15 billion by 2027. Findaway is a leading company in this rapidly growing industry. Founded in 2004, it boasts over 325,000 audiobooks from publishers all over the world. These include titles from some of the largest publishing houses as well as independent authors. It also supports more than 80 different localized languages from various corners of the earth.
Findaway not only distributes audiobooks but also provides tools to creators. It claims to serve authors, publishers, and consumers alike with its innovative tools and other offerings. The Ohio-based company has partnerships with some of the biggest names in the industry, including Amazon, Google, and Apple.
Spotify now plans to build on Findaway’s expertise in this space and “supercharge its growth”. The company says it is aiming to “remove current limitations and unlock better economic tools for creators.”
Spotify aims of becoming the ultimate audio destination for all
Spotify has a strong foothold in the music streaming industry and is rapidly building out its podcasts business as well. It acquired podcast creation platform Anchor as well as podcast network Gimlet in 2019 intending to become the world’s leading audio platform. Since then, the company has invested millions towards that goal. Over the past few months, Spotify introduced several podcast-specific features including a subscription service, transcriptions, polls, and more. It is now entering the audiobooks industry with an even bigger target.
According to Spotify’s Chief R&D Officer Gustav Söderström, the music streaming biggie aims to become the one-stop platform for “all things audio,” both for listeners and creators. The company hopes the acquisition of Findaway to give a much-needed boost to this ambition.
“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,” Söderström said in a press release.
“Together with Spotify, we have the opportunity to innovate and democratize the audiobook ecosystem,” said Mitch Kroll, Founder & CEO of Findaway. Kroll will continue to lead the company from its current headquarters in Solon, Ohio. He will report to Nir Zicherman, head of audiobooks at Spotify.