Report: Podcaster Wondery At A Crossroads

Four years after its launch, Wondery has grown into one of the nation’s largest podcast publishers, drawing acclaim for producing compelling audio programs based on real-life stories.

Now, the West Hollywood business is at a crossroads as it explores a possible sale during a period of rapid consolidation in the podcasting industry, reports The L-A Times.

Hernan Lopez also is facing a legal battle that has clouded his own future at the company he founded. He is among two former Fox TV executives charged with money laundering and wire fraud over alleged bribes involving broadcasting rights to the World Cup and other high profile soccer tournaments. Lopez has pleaded not guilty to the charges filed in March.

Wondery Podcasts

“I’m completely confident that when I have the chance to be before a jury, if it ever gets to trial, I’ll be vindicated,” Lopez said in an interview with The Times.

He added that the charges have not changed his role at the company and that he has no intention of stepping down.

The podcast industry, once fragmented and scattered with smaller publishers, is now dominated by a few large players. In recent years, Spotify, iHeartMedia and SiriusXM have spent millions buying podcast businesses to beef up their platforms. Last year, Spotify bought the New York-based podcast production company Gimlet Media for about $230 million and recently announced a partnership with Chernin Entertainment to turn some of Spotify’s original podcasts into TV shows and films.

The competitive climate has made it tougher for smaller independent players like Wondery to survive on their own, potentially making it an attractive target for studios or other companies seeking to expand their content libraries.

Wondery executives declined to disclose finances, but they said that the business is profitable and that it has raised $15 million from investors. Last year, after raising $10 million, Wondery was valued at more than $100 million.

Bloomberg, which first reported on Wondery exploring a sale, said the company could fetch $300 million to $400 million.

Wondery has had discussions with companies including Sony, according to two people familiar with the matter who declined to be named because they were not authorized to comment. Other potential buyers could include Spotify and Apple, sources said. A person close to Spotify said they are not considering buying Wondery. Apple declined to comment.