Shares of Spotify popped more than 10% on Tuesday before closing up 8.4% after comedian Joe Rogan announced his podcast is moving exclusively to the streaming platform.
The terms of the deal were not disclosed. Rogan's show, The Joe Rogan Experience, launched more than a decade ago and has built a massive and loyal following. It's one of the most popular podcasts, ranking at the top of the charts on major podcasting services from Apple and Google. It's the same podcast where Tesla CEO Elon Musk infamously smoked marijuana in 2018, causing concern for investors.
Spotify has spent the last year strengthening its podcast streaming library. The company said in early February it was acquiring the sports and entertainment news company The Ringer. Last year, it acquired Gimlet Media and Anchor for a total of about $340 million. It also bought Parcast for about $55 million.
After it announced The Ringer deal, Spotify CEO Daniel Ek told investors the company would continue to invest in the podcast space and sees the format as a path for growth at the company, which has to pay most of its revenue back to the music labels it licenses music from.