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Spotify Forays In Live Audio With Locker Room Acquisition: Report

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Spotify Technology SA (NYSE: SPOT) marked its live audio debut with the acquisition of sports-talk app Locker Room and its parent Betty Labs for a $50 million valuation to capitalize on the pandemic induced industry boom, CNBC reports.

  • Clubhouse rival, Locker Room, was initially sponsored by Lightspeed Venture Partners, and more recently by Alphabet Inc’s (NASDAQ: GOOG) (NASDAQ: GOOGL) venture capital arm, Google Ventures, and Precursor Ventures.
  • The Locker Room app was rolled out in October. The app has witnessed 19,000 installations since its launch and noted 8,000 installations in March to date, representing a 60% month-over-month growth.
  • Spotify aims to rebrand and relaunch the app with a broader focus across sports, music, and pop culture while preserving its stand-alone status.
  • Users will be able to record live sessions and upload them to Spotify or podcasting platform Anchor for wider distribution.
  • Spotify intends to tap its music, podcasting stars, and users for programs with artists or DJs before uploading as playlists. 
  • The service will include gaming options for sportscasters and fans. Podcasters will be able to host live ask me anything (AMA) sessions.
  • The app and its content are presently available free of cost. However, Spotify is planning to monetize content through itemized podcast payment.
  • Spotify held cash and cash equivalents worth €1.15 billion as of Dec. 31, 2020.
  • Spotify USA Inc recently raised $1.3 billion in an institutional debt offering.
  • Price action: SPOT shares closed higher by 2.02% at $257.69 on Tuesday.
 

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Posted-In: Clubhouse CNBC Locker RoomM&A News Tech Media

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