Spotify in Early Talks to Buy Sports and Pop-Culture Outlet the Ringer
January 17 2020 - 6:39PM
Dow Jones News
By Anne Steele and Benjamin Mullin
Spotify Technology SA is in talks to buy sports and pop-culture
outlet the Ringer, according to people familiar with the matter, a
deal that would let the audiostreaming giant break into broader
digital media and bring a network of more than 30 podcasts under
its roof.
Discussions are early, these people cautioned, and may not
result in a deal.
Spotify, the largest music-streaming platform by subscribers,
has been investing heavily in podcasting, a bet it hopes will keep
users more engaged, bring over more listeners from radio and
increase profit margins. Last year the company spent $400 million
to snap up three podcast companies and struck more than two dozen
deals for exclusive or original content.
The streaming giant is in the market for more, according to one
of the people, and the potential Ringer acquisition is just one of
many possible transactions under consideration. Dow Jones &
Co., publisher of The Wall Street Journal, has a content
partnership with Gimlet Media, a unit of Spotify.
The Ringer, a sports and pop-culture outlet founded by former
ESPN commentator Bill Simmons in 2016, has a podcasting network
that attracts more than a 100 million downloads a month. In
addition to "The Bill Simmons Podcast," the Ringer produces "The
Watch," a discussion show about TV and pop-culture; "Binge Mode,"
which dives deep into pop-culture franchises; and "The
Rewatchables," a show that breaks down popular movies.
The companies teamed up in September to launch a new original
podcast hosted by Mr. Simmons, "The Hottest Take," which streams
exclusively on Spotify.
Though the Ringer's website doesn't draw as many visitors as
some of its largest competitors, such as ESPN and Bleacher Report,
its podcast network generates significant revenue. The Ringer's
podcast revenues exceeded $15 million in 2018, The Wall Street
Journal reported, and the company is profitable.
The Ringer's podcast network and Mr. Simmons's following would
give Spotify a significant entree to the world of sports audio, a
realm that has long been dominated by traditional radio
stations.
Write to Anne Steele at Anne.Steele@wsj.com and Benjamin Mullin
at Benjamin.Mullin@wsj.com
(END) Dow Jones Newswires
January 17, 2020 18:24 ET (23:24 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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