Last week I had written a piece on Gimlet and how co-founders Alex Blumberg and Matt Lieber had to go through hell and back to get the company on it’s feet. Gimlet, a network of podcasts focusing on narrative journalism and storytelling, now belongs to Spotify. Alex and Matt sold the company for 230 million dollars.
Yes. Nearly a quarter of a billion dollars.
So let’s talk money and media.
How did these two startup rookies become millionaires? They sold a new platform of media to the hungry listeners of Spotify.
Spotify started to get into podcasts two years ago. Now, Spotify is at 20 percent market share in podcasts alone. Spotify needed a company like Gimlet to reach its full potential and grow as a podcast platform.
Alex and Matt spoke about the passion of the company. They put so much into the company but said they’d be lying if they didn’t expect some kind of financial return in the end. Why did they sell? Because at the end of the day Spotify provided everything that Gimlet needed to take the company to the next level and… we’re all just trying to make money.
The author of a Vulture article titled What Spotify’s $230 Million Gimlet Deal Means for the Podcast Industry stated that Spotify’s push into podcasting is mostly driven by a need of diversification. Music labels and other music streaming services have been bruising Spotify. Maybe podcasts will be the thing that saves the streaming service.
Podcasts have given the world of media a breath of fresh air. Perhaps this is the revolution of how we receive our news and entertainment in years to come. This may just be the Golden Age of Radio (Podcasts) 2.0.
Speaking of selling companies, Fortune Media Group CEO Alan Murray sold Fortune to a Thai billionaire not too long ago. In a podcast with Recode Media, Alan says that Fortune is a company who went from print to digital super successfully, enough to sell his company for over $100 million dollars.
So why to a Thai billionaire? The billionaire knew Fortune’s success in Asia, especially China, and wanted in. Now the Future of Fortune lies in the hands of this billionaire. He of course wants Fortune to still be a media platform that makes money.
We’re all trying to make money. You love what you do in life but if you’re not making money off of it, you’re not at your full potential. We may all be creative souls with great ideas but I want my ideas to make me money. I want to make the world better and be happy with what I do after college but money is an important aspect of our daily lives.
The fact that these media corporations are being bought out for millions of dollars leaves me hopeful for the future of media. News and media isn’t dead, it is revamped. It may be podcasts that get you your news and entertainment or a magazine that does the trick. But media is alive and well, and that makes this college journalism senior who graduates in two months, very happy.