Are Apple And Sony Music Interested In Buying Wondery Podcast Network?

 In late September, Bloomberg reported 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.

Last week, Bloomberg updated its story, reporting that Apple and Sony Music have each held talks about potentially acquiring Wondery, the producer of “Dirty John” and “Dr. Death,” according to people familiar with the matter, setting the stage for the biggest deal yet in the booming podcasting market.

Wondery is seeking $300 million to $400 million in a possible sale, said the people, who asked not to be identified because the negotiations are ongoing.

Even the low end of that range is twice its valuation when Wondery announced a fund-raising round in June 2019.

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.

Apple and Sony are two of at least four companies that have discussed a deal with Wondery, according to Bloomberg sources. Though Spotify has been the most aggressive buyer of podcasting companies over the last two years, the Swedish audio giant decided not to bid, said two people with knowledge of the talks. A deal is expected in coming months, but there’s no guarantee that the discussions won’t fall apart.

Wondery is one of the largest independent podcasting studios and networks, reaching a monthly audience of more than eight million people, according to Podtrac, an industry measurement firm. A price tag of as much as $400 million would surpass what Spotify paid for the Ringer and Gimlet Media, as well as what Sirius XM paid for Stitcher.

Wondery has a robust lineup of podcasts that could be turned into television series and other content. It’s already developing more than a dozen TV shows based on its podcasts, including a program for Apple about the rise and fall of WeWork.

For Apple, adding Wondery would mark the tech giant’s most prominent investment in podcasting in several years. It also would immediately give the company a strong library of original content. Apple has been pushing deeper into original series its TV+ video service to compete against streaming giant Netflix and other streaming services like DisneyPlus, HBO Max and CBS All Access, who are all racing to release more original content to attract new viewers and reduce churn. In addition, Wondery is also creating podcasts to augment the video efforts, Bloomberg News has reported.