Spotify Forays In Live Audio With Locker Room Acquisition: Report

Spotify Technology SA (NYSE: SPOT) marked its live audio debut with the acquisition of sports-talk app Locker Room and its parent Betty Labs for a $50 million valuation to capitalize on the pandemic induced industry boom, CNBC reports.

• Clubhouse rival, Locker Room, was initially sponsored by Lightspeed Venture Partners, and more recently by Alphabet Inc’s (NASDAQ: GOOG) (NASDAQ: GOOGL) venture capital arm, Google Ventures, and Precursor Ventures.
• The Locker Room app was rolled out in October. The app has witnessed 19,000 installations since its launch and noted 8,000 installations in March to date, representing a 60% month-over-month growth.
• Spotify aims to rebrand and relaunch the app with a broader focus across sports, music, and pop culture while preserving its stand-alone status.
• Users will be able to record live sessions and upload them to Spotify or podcasting platform Anchor for wider distribution.
• Spotify intends to tap its music, podcasting stars, and users for programs with artists or DJs before uploading as playlists. 
• The service will include gaming options for sportscasters and fans. Podcasters will be able to host live ask me anything (AMA) sessions.
• The app and its content are presently available free of cost. However, Spotify is planning to monetize content through itemized podcast payment.
• Spotify held cash and cash equivalents worth €1.15 billion as of Dec. 31, 2020.
• Spotify USA Inc recently raised $1.3 billion in an institutional debt offering.
• Price action: SPOT shares closed higher by 2.02% at $257.69 on Tuesday.