Spotify's Purchase of The Ringer is Push to Takeover the Podcasting Industry
Spotify is desperately attempting to buy its way into the podcasting industry. Spotify has recently acquired Gimlet Media, Anchor, and Parcast costing the company almost $400 million. Spotify confirmed that it will spend nearly $200 million to buy The Ringer, an online publication for sports and pop culture.
Bill Simmons, former ESPN journalist is expected to have a windfall from The Ringers sale to Spotify but must stay on to run it. The SEC filing shows an all-cash deal with Spotify paying close to $200 million over the next couple of years. The online publication has some 40 different sports-related podcasts on its platform.
Spotify has been going on a shopping spree to move into the podcasting space and with this acquisition, they will have spent upwards of $600 million to purchase four different podcasting services. Sources that are close to the deal have said told Bloomberg that Spotify would pay an initial $200 million up front with another $50 million to be paid later if Simmons, who is the largest shareholder, stays on to run the company. The television company HBO owns a 10% stake in The Ringer, as well.
Founded in 2016, The Ringer has built a large following since then. The deal has all 90 employees now working for Spotify and written in the contract is that they cannot fire the employees. "What we really did with The Ringer, I think, is we bought the next ESPN," Ek said in a Spotify earnings call in early February.