Music Ally reported on Spotify’s latest financial results last week, but the official filing has revealed a bit more information on the company’s recent acquisition of podcasts producer Parcast.
Spotify paid €36m in cash and €13m ‘related to the estimated fair value of contingent consideration’ – €49m (around $55m) in total. However, Spotify also said that “the maximum potential contingent consideration is €43 million over the next three years, which is dependent on certain user engagement targets”.
Spotify’s podcast spending is adding up: three months ago, the company’s last quarterly filing revealed what it paid for its first two podcast acquisitions, Anchor and Gimlet Media. The former, an app used to record podcasts, cost Spotify €136m ($153.4m at the time) including €125m in cash. The latter, another podcast producer, cost €172m ($193.8m). That means Spotify has so far spent just over $400m on the three acquisitions, leaving it up to $100m left for more podcast purchases this year – based on the ‘up to $500m’ budget the company quoted in April.