Amazon And Spotify Considering Bids For London-Based Podcasting Platform

Amazon.com Inc AMZN and Spotify Technology SA SPOT are each considering a potential bid for AudioBoom Group Plc, according to a Sky News report. The two companies may be presenting formal offers to the London-based podcasting and on-demand audio platform within the month, the report indicates.

What Happened: The report says that if either company makes an offer, it will likely come at a “significant” premium to its current stock price. The AudioBoom stock trades on the London Stock Exchange and has a market capitalization of 277.6 million pounds ($376 million). Shares of AudioBoom are up 26% since the start of 2022, with most of the price increase coming in the past two weeks.

In a recent report, the company indicated that revenue grew by 125% in 2021 to $60.2 million. Stuart Last, chief executive of AudioBoom, described it as "a phenomenal year."

Shows on AudioBoom are downloaded 116 million times every month by 32 million unique listeners globally, ranking the company in fourth place among U.S. podcasters.

Also Read: Apple Co-Founder Says He Has Canceled His Spotify Subscription — But It's Not Just About Joe Rogan

Why It Matters: For Spotify, a bid for the company would come at a pivotal moment as the controversy over Joe Rogan, Spotify's top podcaster, has become a growing concern among investors. Meanwhile, an offer by Amazon to acquire Audioboom would be a key addition to its presence in the space, following the purchase of the podcasting platform Wondery for a reported $300 million.

Sky News says a person with knowledge of the developments indicates that a formal approach from the U.S. companies may not ultimately occur, and it's unclear how the public disclosure of their interest may affect their plans to proceed.