Audio streaming and media services provider Spotify Technology S.A. (SPOT) recently revealed that it has entered into a definitive agreement to acquire digital audiobook distribution company Findaway.
The financial terms of the deal, which is expected to close in the fourth quarter of 2021, have been kept under wraps.
Implications of the Deal
With Findaway in its portfolio, Spotify will strengthen its presence in the audiobooks space, which has seen robust growth in recent times.
The acquisition will allow Spotify access to Findaway’s technology infrastructure, which will enable the company to scale its audiobook offerings. Further, publishers, authors and independent creators on the platform will be able to reach Spotify’s millions of customers around the globe.
Chief Research & Development Officer at Spotify, Gustav Söderström, said, “It is Spotify’s ambition to be the destination for all things audio both for listeners and creators. The acquisition of Findaway will accelerate Spotify’s presence in the audiobook space and will help us more quickly meet that ambition.”
Recently, Barclays analyst Mario Lu reiterated a Buy rating on the stock. The analyst, however, raised the price target to $310 from $300, which implies upside potential of 12.05% from current levels.
The Wall Street community is cautiously optimistic about the stock and a Moderate Buy consensus rating based on 11 Buys, 4 Holds and 2 Sells. The average Spotify price target of $318.57 implies that the stock has upside potential of 15.15% from current levels. Shares have gained 6.9% over the past year.
TipRanks Website Traffic
According to the tool, the Spotify website recorded a 30.93% monthly rise in global visits in October. However, year-to-date, website traffic declined 1.89%.