Spotify, the popular music streaming and podcasting service, recently acquired The Ringer, a sports and pop culture website and podcast network, for approximately $250 million. While exact sales figures are expected to be publicly released in an upcoming SEC filing, an anonymous source has spilled the beans to Bloomberg that Spotify will provide $200 million upfront, and the remaining $50 million will be paid at a later date. It’s still unclear at this time if special conditions will need to be met before the latter payment is issued.
As per the deal’s terms, The Ringer’s staff members, including founder Bill Simmons, will continue to operate out of their existing offices while occasionally coordinating with Spotify higher-ups to meet long-term goals and benchmarks. Late last month, The Ringer’s employees learned of Spotify sales talks via an article published in The Wall Street Journal and were unpleasantly surprised by the news. The platform’s writers, editors, and social media experts believed that they could be let go by the music streaming and podcasting service. However, Spotify has retained all existing Ringer workers; it’s worth noting that these individuals unionized in August 2019.
Spotify has already invested a king’s ransom on original podcasts and podcast-focused acquisitions. Michelle and Barack Obama, Kevin Bacon, and an array of other high-profile figures have signed multimillion-dollar contracts with the streaming giant. Evidently, podcasting will play a major role in Spotify’s 2020 business model — with both Apple Podcasts and the entire traditional radio industry as a target.
According to Spotify’s Q4 2019 earnings report, 124 million individuals subscribe to the premium service, and about 153 million users stream through the free version. Both figures have significantly jumped from the same time in 2018, and overall revenue increased, but fourth-quarter losses surpassed $84 million. The company’s focus on podcasting is expected to attract more subscribers and drive revenue in the long run.
The Ringer’s acquisition is a strategic move by Spotify to expand its podcasting empire and attract more users. The platform’s many podcasts are downloaded a total of 35 million times, and on a monthly basis, an estimated 15 million people visit The Ringer’s website. The acquisition will provide Spotify with a new audience and a wider range of content to offer its users.
The Ringer’s unique blend of sports and pop culture content has made it a popular destination for many people. Since its launch in 2016, the website and podcast network has gained a loyal following and has become a go-to destination for sports fans and pop culture enthusiasts alike. The Ringer’s podcasts cover a variety of topics, including basketball, football, movies, music, and TV shows.
The acquisition of The Ringer by Spotify is a win-win situation for both parties. The Ringer will have access to Spotify’s vast resources and user base, while Spotify will be able to offer its users a broader range of content. The acquisition also highlights Spotify’s commitment to podcasting and its desire to become the leading podcast platform in the world.
In conclusion, Spotify’s acquisition of The Ringer is a strategic move that highlights the company’s focus on podcasting and its desire to become the leading podcast platform in the world. The acquisition will provide Spotify with a new audience and a wider range of content to offer its users. The Ringer’s loyal following and unique blend of sports and pop culture content make it a valuable addition to Spotify’s podcasting empire. With its focus on podcasting, Spotify is expected to attract more subscribers and drive revenue in the long run.
