Spotify Announces Acquisition of Audiobook Leader Findaway
November 11 2021 - 4:00PM
Business Wire
Spotify Technology S.A. (NYSE: SPOT) (the “company”), today
announced it has entered into a definitive agreement to acquire
Findaway, a global leader in digital audiobook distribution. Terms
of the transaction were not disclosed.
Together, Spotify and Findaway will accelerate Spotify’s entry
into the rapidly growing audiobooks industry, enabling faster
innovation and bringing audiobooks to Spotify’s hundreds of
millions of existing listeners. Findaway’s technology
infrastructure will enable Spotify to quickly scale its audiobook
catalog and innovate on the experience for consumers,
simultaneously providing new avenues for publishers, authors and
independent creators to reach new audiences around the globe. The
acquisition positions Spotify to revolutionize the space in the
same way as music and podcasts, powering content to reach a wide
audience on its global platform.
“It is Spotify’s ambition to be the destination for all things
audio both for listeners and creators. The acquisition of Findaway
will accelerate Spotify’s presence in the audiobook space and will
help us more quickly meet that ambition,” said Gustav S�derstr�m,
Spotify’s Chief Research & Development Officer. “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.”
“Together with Spotify we have the opportunity to innovate and
democratize the audiobook ecosystem,” said Findaway Founder &
CEO Mitch Kroll. “We founded Findaway with the recognition of the
power of the spoken word through audiobooks and the unique
opportunity to empower storytellers and connect them with
listeners. We look forward to combining our leading technology
tools and world-class team with the reach of Spotify’s platform to
provide an enhanced audio experience for creators, publishers and
listeners around the world.”
The company will maintain its headquarters in Solon, Ohio and
will continue to be led by Findaway Founder & CEO Mitch Kroll,
who will report to Nir Zicherman, Head of Audiobooks at
Spotify.
The transaction is expected to close in the fourth quarter of
2021 and is subject to regulatory review and approval.
About Spotify Technology S.A.
Spotify is the world’s most popular audio streaming subscription
service with a community of more than 381 million Monthly Active
Users and 172 million Premium Subscribers. With a presence in 178
markets, and more than 70 million tracks including 3.2 million
podcast titles, it has transformed the way people access and enjoy
music and podcasts.
About Findaway
Findaway, The World’s Audiobook Partner, started revolutionizing
the business of audiobooks in 2005 with Playaway, a built-for
circulation, pre-loaded audiobook player. With an unparalleled
focus on innovation, Findaway has become the global leader in
digital audiobook distribution with AudioEngine, and the most
trusted self-publishing platform for independent authors with
Findaway Voices. Additional offerings of end-to-end audio
production by Audioworks and publishing under their OrangeSky Audio
imprint have further solidified Findaway’s position at the center
of the audiobook industry. To learn more about Findaway and the
Findawayers who make it all happen, visit www.findaway.com.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” as
defined in Section 27A of the United States Securities Act of 1933,
as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended. The words “will,” “expect,” and
similar words are intended to identify forward-looking statements.
Examples of forward-looking statements include, but are not limited
to, statements we make regarding the potential benefits of the
acquisition and the anticipated timing of the closing of the
acquisition. We intend such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995 and include this statement for purposes of complying
with the safe harbor provisions. Such forward-looking statements
involve significant risks, uncertainties and assumptions that could
cause actual results to differ materially from our historical
experience and our present expectations or projections, including
but not limited to the following known material factors: our
ability to attract prospective users and to retain existing users;
competition for users, user listening time, and advertisers; risks
associated with our international expansion and our ability to
manage our growth; our ability to predict, recommend, and play
content that our users enjoy; our ability to effectively monetize
our Service; our ability to generate sufficient revenue to be
profitable or to generate positive cash flow and grow on a
sustained basis; risks associated with the expansion of our
operations to deliver non-music content, including podcasts,
including increased business, legal, financial, reputational, and
competitive risks; potential disputes or liabilities associated
with content made available on our Service; risks relating to the
acquisition, investment, and disposition of companies or
technologies; our dependence upon third-party licenses for most of
the content we stream; our lack of control over the providers of
our content and their effect on our access to music and other
content; our ability to comply with the many complex license
agreements to which we are a party; our ability to accurately
estimate the amounts payable under our license agreements; the
limitations on our operating flexibility due to the minimum
guarantees required under certain of our license agreements; our
ability to obtain accurate and comprehensive information about the
compositions embodied in sound recordings in order to obtain
necessary licenses or perform obligations under our existing
license agreements; new copyright legislation and related
regulations that may increase the cost and/or difficulty of music
licensing; assertions by third parties of infringement or other
violations by us of their intellectual property rights; our ability
to protect our intellectual property; the dependence of streaming
on operating systems, online platforms, hardware, networks,
regulations, and standards that we do not control; potential
breaches of our security systems or systems of third parties,
including as a result of our Work From Anywhere program;
interruptions, delays, or discontinuations in service in our
systems or systems of third parties; changes in laws or regulations
affecting us; risks relating to privacy and protection of user
data; our ability to maintain, protect, and enhance our brand;
payment-related risks; our ability to hire and retain key
personnel, and challenges to productivity and integration as a
result of our Work From Anywhere program; our ability to accurately
estimate our user metrics and other estimates; risks associated
with manipulation of stream counts and user accounts and
unauthorized access to our services; tax-related risks; the
concentration of voting power among our founders who have and will
continue to have substantial control over our business; risks
related to our status as a foreign private issuer; international,
national or local economic, social or political conditions; risks
associated with accounting estimates, currency fluctuations and
foreign exchange controls; and the impact of the COVID-19 pandemic
on our business and operations, including any adverse impact on
advertising sales or subscriber revenue; risks related to our debt,
including limitations on our cash flow for operations and our
ability to satisfy our obligations under the Exchangeable Notes;
our ability to raise the funds necessary to repurchase the
Exchangeable Notes for cash, under certain circumstances, or to pay
any cash amounts due upon exchange; provisions in the indenture
governing the Exchangeable Notes delaying or preventing an
otherwise beneficial takeover of us; any adverse impact on our
reported financial condition and results from the accounting
methods for the Exchangeable Notes; and such other risks as set
forth in our filings with the United States Securities and Exchange
Commission. We undertake no obligation to update forward-looking
statements to reflect events or circumstances occurring after the
date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20211111006067/en/
Investor Relations: Bryan Goldberg ir@spotify.com
Investors.spotify.com
Public Relations: Dustee Jenkins press@spotify.com
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