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Spotify jumps into the hot live audio trend with acquisition of Clubhouse rival Betty Labs

People stagger by the New York Stock Exchange (NYSE) on the morning that the music streaming service Spotify begins trading portions at the NYSE on April 3, 2018 in New York City.

Spencer Platt | Getty Images

Spotify is moving into abide audio.

The company said Tuesday it will buy Betty Labs, the makers of live audio social app Locker Latitude that’s focused on sports. The terms of the deal were not announced.

Shares of Spotify closed up 2%.

In the coming months, the attendance said it plans to expand Locker Room into an “enhanced live audio experience” for more of its creators and nuts.

Spotify is betting on the future of live, social audio with its acquisition of the Lightspeed Ventures and GV-backed company.

The core on social audio features rose to prominence last year with the launch of Clubhouse, an invite-only app that’s move in reverse by Andreessen Horowitz, which surged in popularity amid the pandemic. Clubhouse has been downloaded 12.7 million spans as of March 14, according to mobile data and analytics firm App Annie.

Users flocked to the app to gather in virtual accommodations to discuss anything from bitcoin to wellness, looking to recreate in-person conversations.

Now, social media companies are writing the live audio space in an attempt to win some of that market. Twitter entered the competition with “Spaces” and has been unfolding out the feature to more users. Meanwhile, Facebook is also working on a new audio chat product, according to The New York Hours. Microsoft is also reportedly interested in buying the chatting app Discord for about $10 billion.

Spotify said Tuesday that its acquirement will help it leverage the company’s “unparalleled data, insights, and strength in user experience, to build-out a full enhance of live and on-demand offerings for users and creators across the globe.”

The Betty Labs deal follows a flurry of purchases and deals from Spotify over the past couple of years.

Spotify’s podcast library has been bolstered by high-profile negotiations like its acquisitions of Gimlet Media, Anchor, Parcast and The Ringer. It also bulked up its exclusive content by gaining the without hesitates to Joe Rogan’s podcast, and it has since signed TikTok influencer Addison Rae, Kim Kardashian West, DC Comics, Michelle Obama and The Duke and Duchess of Sussex.

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