Financial terms of the deal weren’t disclosed. Spotify expects the acquisition to close in the second quarter of 2019. Parcast had not raised any outside funding; founder and president Max Cutler and his father, radio producer Ron Cutler, were the only investors, according to a report in Podcasting Business Journal.
The Parcast acquisition comes after Spotify last month paid around $337 million to buy two podcasting companies: producer Gimlet Media and services provider Anchor FM Inc. Spotify told investors it expects to invest between $400 million and $500 million in podcasting this year.
Parcast, founded in 2016, has launched 18 premium podcast series to date and has more than 20 shows in development that are slated to launch later this year. The startup focuses on mystery, crime, science fiction, and history genres — with an audience that is more than 75% female. Parcast’s lineup of original shows includes “Serial Killers,” “Unsolved Murders,” “Cults,” “Conspiracy Theories” and “Mind’s Eye.”
L.A.-based Parcast operates two studios and has around 20 employees. According to Spotify, Parcast will continue to function as an autonomous studio.
“The addition of Parcast to our growing roster of podcast content will advance our goal of becoming the world’s leading audio platform,” Dawn Ostroff, Spotify’s chief content officer, said in announcing the deal. “Crime and mystery podcasts are a top genre for our users and Parcast has had significant success creating hit series while building a loyal and growing fan base.”
“In three years, we have created a production house that has grown exponentially and hit a chord with mystery and true-crime fans, especially women, across all 50 states and around the world. We are proud to join the world’s most popular audio subscription streaming service and gain access to one of the largest audiences around the world,” Parcast’s Cutler said in a statement. “Alongside Spotify, our ability to scale, grow and amplify the unique and tailored brand of content we create is full of fantastic possibilities.”