Spotify Announces Acquisition of Audiobook Leader Findaway

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NEW YORK – Spotify Technology SA (NYSE: SPOT) (the “Company”) today announced that it has entered into a definitive agreement to acquire Findaway, a global leader in the distribution of digital audiobooks. Terms of the transaction were not disclosed.

Together, Spotify and Findaway will accelerate Spotify’s entry into the rapidly growing audiobook industry, enabling faster innovation and bringing audiobooks to the hundreds of millions of existing Spotify listeners. Findaway’s technology infrastructure will allow Spotify to rapidly expand its audiobook catalog and innovate in the consumer experience, simultaneously providing new avenues for independent publishers, authors and creators to reach new audiences in the world. whole world. The acquisition positions Spotify to revolutionize the space much like music and podcasts, fueling content to reach large audiences on its global platform.

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“It’s Spotify’s ambition to be the destination for all things audio for both listeners and creators. The acquisition of Findaway will accelerate Spotify’s presence in the audiobook space and help us meet this ambition more quickly, ”said Gustav Söderström, Research and Development Director, Spotify. “We are thrilled to combine the team at Findaway, the best-in-class technology platform and a robust audiobook catalog, with Spotify’s expertise to revolutionize the audiobook space as we have done with music and podcasts. ”

“With Spotify, we have the opportunity to innovate and democratize the audiobook ecosystem,” said Mitch Kroll, Foundaway founder and CEO. “We founded Findaway with the recognition of the power of speech through audiobooks and the unique opportunity to empower storytellers and connect them with listeners. We look forward to combining our cutting-edge technological tools and world-class team with the reach of Spotify’s platform to deliver an enhanced audio experience to creators, publishers and listeners around the world.

The company will retain its headquarters in Solon, Ohio and will continue to be led by Findaway founder and CEO Mitch Kroll, who will report to Nir Zicherman, head of audiobooks at Spotify.

The transaction is expected to close in the fourth quarter of 2021 and is subject to regulatory review and approval.

About Spotify Technology SA

Spotify is the world’s most popular audio streaming subscription service with a community of over 381 million monthly active users and 172 million premium subscribers. With a presence in 178 markets and over 70 million tracks, including 3.2 million podcast titles, it has transformed the way people access and enjoy music and podcasts.

About Findaway

Findaway, the global audiobook partner, began to revolutionize the audiobook industry in 2005 with Playaway, a pre-loaded audiobook player designed for traffic. With an unprecedented focus on innovation, Findaway has become the global leader in digital audiobook distribution with AudioEngine, and the most trusted self-publishing platform for independent authors with Findaway Voices. Audioworks’ additional end-to-end audio production and publishing offerings under their OrangeSky Audio footprint have further strengthened Findaway’s position at the center of the audiobook industry. To learn more about Findaway and the Findawayers that make it all possible, visit www.findaway.com .

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FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as modified. The words “will”, “expect” and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding the potential benefits of the Acquisition and the expected timing of the Acquisition closing. We wish these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for the purpose of complying with the safe harbor provisions. These forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from our historical experience and our current expectations or projections, including, but not limited to, known significant factors. the following: our ability to attract potential users and retain existing users; competition for users, user viewing time and advertisers; risks associated with our international expansion and our ability to manage our growth; our ability to predict, recommend and read content that our users enjoy; our ability to effectively monetize our Service; our ability to generate sufficient income to be profitable or generate positive cash flow and grow steadily; risks associated with expanding our operations to provide non-musical content, including podcasts, including increased business, legal, financial, reputational and competitive risks; potential disputes or liabilities associated with content made available on our Service; risks associated with the acquisition, investment and disposal of businesses or technologies; our reliance on third-party licenses for most of the content we broadcast; our lack of control over the providers of our content and their effect on our access to music and other content; our ability to comply with the many complex license agreements to which we are party; our ability to accurately estimate the amounts payable under our license agreements; limitations on our operating flexibility due to minimum guarantees required under some of our license agreements; our ability to obtain accurate and complete information about the compositions incorporated in sound recordings in order to obtain necessary licenses or to perform obligations under our existing license agreements; new copyright laws and related regulations that may increase the cost and / or difficulty of music licensing; allegations by third parties of infringement or other violations by us of their intellectual property rights; our ability to protect our intellectual property; the dependence of streaming on operating systems, online platforms, hardware, networks, regulations and standards that we do not control; potential breaches of our security systems or third party systems, including as a result of our Work From Anywhere program; interruptions, delays or interruptions of service in our systems or third party systems; changes in laws or regulations affecting us; risks related to the privacy and protection of user data; our ability to maintain, protect and improve our brand; payment risks; our ability to hire and retain key personnel, and the productivity and integration challenges resulting from our Work From Anywhere program; our ability to accurately estimate our user metrics and other estimates; risks associated with the manipulation of the number of feeds and user accounts and unauthorized access to our services; tax risks; the concentration of voting power among our founders who have and will continue to have substantial control over our business; the risks associated with our status as a foreign private issuer; international, national or local economic, social or political conditions; risks associated with accounting estimates, currency fluctuations and foreign exchange controls; and the impact of the COVID-19 pandemic on our business and operations, including any negative impact on advertising sales or subscriber revenues; risks relating to our debt, including limitations on our operating cash flows and our ability to meet our obligations under exchangeable notes; our ability to raise the funds necessary to redeem Notes exchangeable for cash, in certain circumstances, or to pay cash amounts due upon redemption; the provisions of the Exchangeable Ticket Deed delaying or preventing an otherwise beneficial takeover of us; any adverse impact on our financial condition and reported results of accounting policies for exchangeable notes; and other risks as set out in our filings with the United States Securities and Exchange Commission. We assume no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date hereof.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20211111006067/en/

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Contacts

Investor Relations:
Bryan goldberg
[email protected]
Investors.spotify.com

Public relations:
Dustee Jenkins
[email protected]

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