Spotify (SPOT) pops after inking new $250M deal with Joe Rogan

Shares of Spotify Technology (NYSE: SPOT) rose 1.4% on Friday after the streaming and media company announced it has struck a fresh multi-year agreement with Joe Rogan, the host of the highly popular "The Joe Rogan Experience" podcast.

Unlike his previous exclusive deal with Spotify, this new arrangement will see the podcast become available on additional platforms, marking a significant shift.

This revamped deal – estimated to be valued at up to $250 million over its multiyear duration according to Wall Street Journal – comprises an initial minimum guarantee and a revenue-sharing arrangement tied to advertising sales.

"JRE remains podcasting’s king, consistently ranking as the most-listened-to podcast globally and our users have ranked the show as Spotify’s Wrapped top podcast each year since 2020," Spotify said in the release.

This shift underscores the changing landscape of podcast economics, as the industry has grown in both audience size and advertising investment since Rogan's last contract. Spotify's strategy now focuses on maximizing audience reach and ad revenue by distributing shows on multiple platforms, rather than insisting on exclusivity.

By Vahid Karaahmetovic

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