In 2019, Spotify announced its ambition to become the world's leading audio platform with an expansion into podcasting through the acquisitions of Anchor and Gimlet. Since then, Spotify has not only become a leading platform for podcast creators and listeners, but also expanded on the very format of podcasting itself: taking a fixed format and making it a new audio experience. And today we are taking another step in furthering this mission to build the future of audio by announcing that Spotify has entered into a definitive agreement to acquire Findaway, a global leader in digital audiobook distribution.
"It's Spotify's ambition to be the destination for all things audio both for listeners and creators. The acquisition of Findaway will accelerate Spotify's presence in the audiobook space and will help us more quickly meet that ambition," said Gustav Söderström, Spotify's Chief Research & Development Officer. "We're excited to combine Findaway's team, best-in-class technology platform, and robust audiobook catalog with Spotify's expertise to revolutionize the audiobook space as we did with music and podcasts."
Findaway works across the entire audiobook ecosystem with a platform and offerings that serve authors, publishers, and consumers of this rapidly growing industry, which is expected to grow from $3.3 billion to $15 billion by 2027. In addition to offering the largest catalog of distributed titles, Findaway has actively worked to democratize audiobooks through leading technology tools available for independent authors to create and bring their stories to life. We plan to build on Findaway's significant innovation in the space, and we're going to supercharge its growth, bringing everything Spotify knows around personalization and discovery while also innovating on format, delivery, creator tools, and more.
Together, Spotify and Findaway will accelerate Spotify's entry into the audiobook space and continue to innovate the industry, working to remove current limitations and unlock better economic tools for creators. Findaway's technology infrastructure will enable Spotify to quickly scale its audiobook catalog and innovate on the experience for consumers, simultaneously providing new avenues for publishers and authors to reach audiences around the globe.
*Terms of the transaction were not disclosed. It is expected to close in the fourth quarter of 2021 and is subject to regulatory review and approval.
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