Houlihan Lokey Advises Parcast

Houlihan Lokey is pleased to announce that Cutler Media LLC, dba Parcast, has been acquired by Spotify Technology S.A. (NYSE:SPOT) (Spotify). The transaction closed on April 1, 2019.

Founded in Los Angeles in 2016 by Max Cutler, Parcast is the premier storytelling podcast network focused on creating scripted, story-driven audio programming that is engaging, informative, and entertaining. With expertise in genres touching mystery, crime, science fiction, and history, the company has developed large and highly engaged audiences across its robust network. Since inception, Parcast titles have been downloaded more than 150 million times, with more than 100 million downloads in 2018. The company has had significant success creating hit series (including Cults, Serial Killers, and Mythology) while building a loyal and growing fan base, with 18 original titles to date and 20 new titles expected to launch this year. Unique among leading podcast networks, Parcast creates, develops, and produces all its shows in-house with a team of writers, researchers, and hosts and owns all of its intellectual property.  

Spotify is the world’s most popular and largest music streaming service, with a community of more than 207 million users, including more than 96 million Spotify Premium subscribers, across 79 markets worldwide. Parcast will bring to Spotify its curated library of highly produced shows and its engaged, loyal audiences. The acquisition is a key part of Spotify’s "audio-first" strategy, strengthening Spotify’s position as a premier producer of podcasts and accelerating its path to becoming the world’s leading audio platform.

Houlihan Lokey served as the exclusive financial advisor to Parcast and assisted in structuring and negotiating the transaction. The transaction highlights Houlihan Lokey’s continued success as a leading advisor to digital media companies.