September 14, 2022
Good morning, Media Deals readers!
😬 Situational awareness: Emmys viewership fell 25% to 5.9 million total viewers, an all-time low.
1 big thing: Podcasting the net for deals
For consumers, podcasts are popular. For dealmakers, same thing.
Driving the news: Podimo, a Copenhagen-based podcast and audiobook subscription platform, has raised €58.6 million in new funding, CEO Morten Strunge tells Kerry.
Why it matters: Cue the M&A. The funds from this latest round, less than a year after its Series B, will be put toward market expansion in part through content and tech acquisitions over the coming months.
- The round is part of a broader trend. The podcasting space has seen a wave of investment and consolidation.
Details: 83North, Highland Europe and Saban Ventures led the Podimo round. Chr. Augustinus Fabrikker, Heartcore and Headline also participated. All are existing investors.
- The company raised about €162 million in total, most recently closing a €69.3 million Series B in November 2021.
- "We're actually ahead of plans and have also spent less cash than anticipated," Strunge says. "With the changing environment in the world, we've decided to go for longer runway so that we could pursue the continuous growth that we're looking for."
Of note: Podimo bought Dutch podcast publisher Dag en Nacht earlier this year.
- Strunge says Podimo is looking to acquire more content studios in other regions.
- "We can develop a show one by one, or we could acquire a proven production company or an IP owner that sits with a bunch of shows," he says.
- Podimo is also exploring tech acquisitions that could improve its product experience.
By the numbers: Strunge declined to disclose revenue or valuation, but he says the company will reach profitability from this latest funding round. Its first market, Denmark, is profitable itself.
- "It's cheaper to produce audio than it is to produce video, and we're not relying on rights holders like in the music industry," Strunge says. "Our margins are improving rapidly."