Spotify Technology SA (NYSE: SPOT) will boost its podcasting business with the acquisition of Bill Simmons' The Ringer, bringing several popular podcasts into the audio service's fold.
Terms of the deal weren't disclosed. Spotify said it expects the deal to close in the first quarter. A statement from Spotify said the move was intended to bolster its goal "to become the world's leading audio platform."
Why It's Important For Spotify
The acquisition gives Spotify several podcasts from The Ringer's network, including "The Bill Simmons Podcast," "The Ringer NBA Show," "The JJ Reddick Podcast," and "Ringer FC." While most of the network's podcasts are sports-related, it also includes pop culture shows and the popular food-related podcast "House of Carbs."
"With its popular show lineup, The Ringer also offers new opportunities for monetization along with a continued focus on deepening audience engagement and innovating formats within Spotify’s business model," the company said. "Not only has Simmons been a podcast pioneer in sports, he has also been a dominant force in the podcast pop culture arena."
The shows add to a stable of nonfiction podcasts Spotify got last year when it acquired Gimlet and Parcast. Spotify ended last year with 124 million paid subscribers and 271 million total active monthly users. The Ringer, which also includes the athlete-focused publication of the same name, was founded by Bill Simmons in 2016.
“As we set out to expand our sports and entertainment offerings, we wanted a best-in-class editorial team," said Dawn Ostroff, Chief Content Officer, Spotify. "Bill Simmons is one of the brightest minds in the game and he has successfully innovated as a writer and content creator across mediums and platforms."
Spotify shares were down 5% to $146.75 after closing Tuesday at $154.31 after the company reported worse-than-expected fourth-quarter sales results. The company also reported EPS results down from last year.