Spotify announced that it will purchase The Ringer,the popular podcast for sports and culture owned by Bill Simmons.
The Ringer’s website covers sports and culture, and the music streaming company, Spotify plans to keep the site running. It also intends to hire Simmons and all his employees.
The companies didn’t reveal the sale price, but the deal is expected to close in the first quarter of 2020.
Daniel Ek CEO Spotify said on an interview: “With the Ringer, we’re basically getting the new ESPN. What Simmons accomplished in just a few short years, it’s nothing short of extraordinary. It’s not just his own podcast, but his whole network that’s doing well. He’s a talented magnet.”
On Wednesday, Bill Simmons tweet: “This morning we announced that @spotify is acquiring The Ringer. Couldn’t be more excited to work with @eldsjal and his phenomenal team.”
In the last 12 months, Spotify has acquired four podcast companies. Last year, Spotify spent about $400 million on acquiring Parcast, Anchor FM, Gimlet Media and funded original shows from comedian Amy Schumer, hip-hop artist Joe Budden and journalist Jemele Hill.
The music streaming company is also building a podcast advertising business, which assures to listeners based on their demographics and online behaviour.
Apple had a hegemony over podcasting, because of the popularity of its iOS operating system, which has an in-built podcasting app. However, Apple hasn’t tried to grow its economy from podcasting.
Spotify, on the contrary is successfully gaining the upper hand in streaming podcasts.