Spotify acquires Graham Holdings Co. business, Megaphone, for $235M

Music streaming giant Spotify Technology SA will acquire Arlington-based media and education conglomerate Graham Holdings Co.’s podcast technology company Megaphone for $235 million, the company announced Tuesday.

Megaphone provides hosting and ad-insertion capabilities for publishers and targeted ad sales for brand partners, according to Graham Holdings Co., the family company of the late Katharine Graham, who was the publisher and owner of The Washington Post. Its current holdings include online magazine Slate, digital marketing company SocialCode LLC, a group of seven television stations and higher education company Kaplan Inc. The company also holds Graham Media Group, which was formerly the Post-Newsweek Stations.

“Spotify will be a great home for Megaphone,” Graham Holdings Co. President and CEO Timothy J. O’Shaughnessy said in a statement. “I am proud of the Megaphone team and what they have built, and we look forward to their continued success.”

Launched in 2008, Stockholm, Sweden-based Spotify reported $7.44 billion in 2019 revenue. The web and mobile app allows users to livestream and listen to music, podcasts and other media through a monthly subscription model.

The acquisition is subject to regulatory approval and other closing conditions. Allen & Co. LLC assisted in the sale process.

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