Spotify Preparing To Acquire Podcasting Network the Ringer — Report

Spotify Preparing To Acquire Podcasting Network the Ringer -- Report
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In recent news, Spotify has been in early talks to acquire a podcasting network called the Ringer. This move comes after analysts from both Evercore and Bernstein gave Spotify an underperform rating. With many in the industry projecting that podcasting will become the next big thing in streaming, Spotify has increasingly been putting resources into the format. Their interest in the Ringer, which offers both sports and pop-culture programming, is the latest move in these efforts.

Founded in 2016 by former ESPN commentator Bill Simmons, the Ringer has been steadily growing its slate of podcasts. Reportedly, the company’s shows receive more than 100 million downloads monthly. In 2018, they further generated more than $15 million in revenue, and according to the Wall Street Journal, they are already profitable.

If Spotify does acquire the Ringer, it will not be the first time that the two companies have worked together. They also cooperated on a podcast that was hosted by Simmons himself. Entitled The Hottest Take, the show has been available exclusively on Spotify.

As the acquisition talks are still in the early stage, there are scant details at the moment about how the Ringer would function post-acquisition. For example, it is unknown whether the company’s existing podcasts would at once become exclusive to Spotify or if the acquisition would only affect future podcasts.

Either way, Spotify’s competitors in the market, such as Apple, can only be concerned with deals like this. It may even drive them to make their own acquisitions, which could lead to a frenzy of new investment in podcasting.

Just last year, Spotify spent more than $400 million to purchase a trio of podcast companies. This move was seen as a major push by the company to become the go-to destination for podcasts. With this latest talk of acquisition, Spotify is once again making a statement about their dedication to the format.

Of course, it should be noted that the report also indicated that a deal between Spotify and the Ringer is not imminent and that talks “may not result in a deal.” However, if the acquisition does go through, it could have significant implications for the podcasting industry.

Firstly, it would give Spotify access to a wide range of popular podcasts, including the Ringer’s flagship show, The Bill Simmons Podcast. This would allow the company to offer exclusive content to its users, which could be a major draw for new subscribers.

Secondly, it would likely lead to further investment in podcasting from other companies. If Spotify is successful in making the Ringer acquisition, it could signal to other companies that podcasting is a lucrative market worth investing in. This could lead to a flurry of new acquisitions and partnerships in the industry.

Overall, the potential acquisition of the Ringer by Spotify is an exciting development for the podcasting industry. With more and more people tuning in to podcasts every day, it’s clear that there is a lot of potential for growth in this market. If Spotify is successful in its efforts to become the go-to destination for podcasts, it could have a major impact on the future of the industry. Only time will tell how things will shake out, but one thing is certain: the podcasting landscape is evolving rapidly, and there are sure to be many more exciting developments in the years to come.