Podcasting’s Next Wave Of Mergers Starting

The era of consolidation in podcasting seemed like it might have effectively started and ended when Spotify, Amazon, SiriusXM and others gobbled up major names in the space in an effort to diversify their audio lineups. But now, four years after Spotify got into podcasting by buying Anchor and Gimlet Media, Bloomberg reports we’re witnessing the dawn of a second wave. This time around, the companies up for sale are smaller production studios and networks.

Last week brought news of two such deals. Audily, a relatively new production company that specializes in branded shows, bought Rococo Punch, an independent studio best known for its shows Welcome to Provincetown and Finding Raffi .

A second, all-stock deal involved LiveOne, the owner of PodcastOne, acquiring Kast Media, which makes and monetizes programs like The Sarah Silverman Podcast and Whitney Cummings’ Good For You .

The terms for these deals were not disclosed. But the back-to-back announcements arrived in an increasingly challenging environment for podcasters looking to monetize their work, both through ads and selling programs to production partners. The tech companies that have traditionally spent the most money in the space have slowed down their spending just as advertisers, spooked by a possible recession, have pulled back on marketing.

“It’s a rough, rough world out there,” said Jessica Alpert, co-founder at Rococo Punch. “I wish I could say everyone is going to get through it but I don’t know.”

We’ve seen the fallout already. Smaller networks, such as Starburns Audio, have shut down while almost every audio company has laid off employees. Limited series, which are more difficult to monetize even in a good economy, aren’t being made as frequently and have grown less appealing to possible financers. To stay afloat, independents might have to band together, diversify their offerings and ride out whatever comes next.

“I fully expect this isn’t our last opportunity to roll up this space,” said Robert Ellin, CEO and chairman at LiveOne. 

While these two companies were snapped up, other buyers are circling and looking for possible investments. Chris Peterson, a former iHeartMedia and LionTree executive,  just announced  the launch of DWNLOAD Media, which intends to take majority stakes in podcast companies. Meanwhile, PodX Group, a private-equity-backed firm, has made multiple acquisitions around the world since setting out to roll up independent production shops.