Wondery Podcast Network Up For Sale

According to Bloomberg, Wondery Inc., the company behind hit podcasts “Dr. Death” and “Dirty John,” has hired financial advisers to explore strategic options, including a potential sale, hoping to cash in on growing interest from technology and media firms. Wondery is expected to attract at least $200 million if it pursues a sale and could fetch as much as double that, which would represent the largest podcasting transaction to date, according to people familiar with a possible sale. Even the low end of that range is twice its valuation when Wondery announced a fund-raising round in June 2019.

 The company’s revenue is up 75 percent from a year earlier and will surpass $40 million this year, said an anonymous source. The podcaster’s options also include raising more money or doing a deal with a special-purpose acquisition company, or SPAC, the person said. Wondery could attract interest from a range of companies looking to break into podcasting.

 Spotify, the streaming-music giant, has emerged as the biggest buyer of podcasting studios, spending hundreds of millions of dollars on Gimlet Media, the Ringer and Parcast. Gimlet and the Ringer were both valued at more than $200 million apiece in those deals. Other big companies have shown an interest in podcasting deals as well. That includes SiriusXM.

Wondery isn’t purely dependent on ads — the main driver of revenue in the podcast industry. About a quarter of its sales come from other sources, reported a source to Bloomberg. It recently launched a direct-to-consumer app, making it less reliant on the big podcasting platforms. Users can pay $4.99 a month for early access to shows and other bonus features.

Founded in 2016 by former TV executive Hernan Lopez, Wondery also handles distribution and advertising sales for dozens of shows that reach close to 9 million people a month in total, according to Podtrac, an industry researcher.

Wondery has a diverse stable of shows to attract listeners. Business Wars, which hosts multi-episode shows about competitors in an industry — FedEx vs UPS, Domino’s vs Pizza Hut, Amazon vs WalMart and more has been successful at attracting listeners. A new podcast, Sports Wars, duplicates that focus on rivals — this time in the sports world — with Brett Favre vs Aaron Rodgers, Yankees vs Red Sox and even Russia vs U.S. in the 1980 Winter Olympics.

Another highly successful podcast is The City — in collaboration with USA Today. Its recently completed second season was about Reno, Nevada and a battle that pitted city officials who wanted the city to continue a transformation into a more economically, socially and ethnically diverse urban area against a strip club owner who enjoyed the benefits of a raunchier, grittier city.

Wondery faces two hurdles in its sale, however. The company doesn’t own the intellectual property for a couple of its shows, and Lopez is under a legal cloud. He has been charged with bribing soccer officials when he worked for 21st Century Fox. Lopez has pleaded not guilty.

Stay tuned for more updates.