Spotify Technology S.A., a streaming music company, is making yet another acquisition aimed at getting a lead in the burgeoning podcast industry. The streaming-music juggernaut has reportedly agreed to purchase The Ringer, the sport-centric podcast media company operated and owned by Bill Simmons.
The move follows three podcast acquisitions Spotify completed in the last year: Parcast, which it bought for around US$55 million and Gimlet Media and Anchor which it purchased for a total of around US$340 million.
For a record, The Ringer was established by sportswriter Bill Simmons in 2016. The platform has over 30 podcasts in its network, including “The Rewatchables”, “The Bill Simmons Podcast,” and “The Ryen Russillo Podcast.” It also produces books, non-scripted films, and online content.
Daniel Ek, CEO, Spotify, said that this acquisition would add tremendous value to the company’s portfolio as billions of people would start listening to audio. Daniel added that the company is excited to invest in this trend.
According to a press release, Spotify hopes that The Ringer acquisition would help them become a leading audio platform in the world. With internet penetration, the demand for podcasts has increased considerably worldwide. This trend has inspired Spotify to collaborate with a potential service provider to enhance its business reach.
Last year, the company acquired LA-based podcasting studio Parcast. Established in 2016, Parcast has two production studios and has created popular podcast shows including Serial Killers, Female, Mind’s Eye, and Criminals.
Commenting on the acquisition, Spotify prior said that the company expects revenue from podcasts to accelerate through 2019. With time, their ambition has changed to developing more strong advertising solution for podcasts that will allow the firm to layer in the kind of measurement, targeting, and reporting capabilities.
Source Credit - https://www.cnbc.com/2020/02/05/spotify-spot-earnings-spotify-acquires-the-ringer-to-boost-podcasts.html