Could Spotify’s shopping spree be done? In a trio of deals this year, Spotify has so far spent $402 million, telling investors on Monday that its most recent deal—the acquisition of the content studio Parcast—cost $56 million. That’s well below a previously-reported $100 million figure. Spotify has still not disclosed how much it has paid for Gimlet Media or Anchor, but the three company tally suggests it is now within the $400 to $500 million range it said it expected to invest into podcasting this year. That raises the question of whether Spotify is still shopping for more assets, or whether it believes it has what it needs to move forward.
On a call with investors, CEO Daniel Ek said Monday the addition of Gimlet, Parcast and Anchor will “help accelerate our goal of becoming the world's number one audio platform.” But just as noteworthy as he was announcing all three transactions have now closed was the fact that there was no mention of additional deals in the pipeline. Future acquisitions can’t be ruled out, but they may be targeted to markets beyond U.S. borders. “While our acquisitions have been focused on English-language content, I don't think you should read in too much to the fact that that's an English-only strategy. It's very much a global strategy,” Ek said.
For investors who may be jittery about a company that’s yet to turn a profit spending so much in such a short time, Spotify also told investors that the $402 million spent so far on podcasting is “roughly equivalent” to the cash generated by the company during the past three quarters. And if that wasn’t enough to ease worries, Spotify offered another way of looking at it. It said the money spent on podcasting is a bit more than half (55%) of the value of its investment in the Chinese streaming music service Tencent Music—which is now worth $2.6 billion, an increase of $731 million since the start of the year.