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Spotify teases more acquisitions for new categories like audiobooks

Jun 9, 2022
Spotify CEO Daniel Ek at Spotify's Investor Day on June 8, 2022 in New York.

Spotify CEO Daniel Ek. Screenshot: Spotify's Investor Day.

Spotify's interest in acquisitions appears to be going strong as CEO Daniel Ek shared a major push into audiobooks and new unnamed categories at the company's Investor Day on Wednesday.

Why it matters: Ek said he judges Spotify's success on users' lifetime value and that these investments in new categories will further grow that and ensure long-term profitability.

What he's saying: "There's one dominate player in audiobooks, and that's similar to what the podcast space looked [like] in 2018," Ek told Axios' Sara Fischer. "We think that by entering the market, there's a great chance to win but also expand that market, and if that takes more acquisitions, we're flexible to do that."

Context: Spotify has invested more than $1 billion to help it compete in podcasting. It acquired studios like Gimlet and tech like Anchor and signed exclusive licensing deals with top podcasters like Joe Rogan and Alex Cooper.

  • To expand into audiobooks, Spotify acquired Findaway last year.
  • "What our successes in music and podcasting has clearly demonstrated is that we've built a powerful machine and solid infrastructure that enables us to go after new verticals, and we're not waiting around," Ek said at Wednesday's event.

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