The Ringer’s Bill Simmons is taking his talents—and his 90-person staff—to Spotify.
The music streaming service today announced that it has picked up The Ringer, the sports and culture site Simmons started in 2016. Terms of the deal were not disclosed.
The acquisition comes on the heels of Spotify aggressively gobbling up podcasting companies Gimlet and Anchor in the ongoing seesaw between music streaming providers, like Apple and Google.
The Ringer has 30 podcasts—and boasted of podcast ad sales north of $15 million in 2018—and a “proven track record of creating distinctive cultural content as well as discovering and developing top-tier talent [that] will make them a formidable asset for Spotify,” according to a statement from Spotify’s chief content officer Dawn Ostroff.
During this morning’s earnings call, Spotify CEO Daniel Ek said, “What we really did with The Ringer, I think, is we bought the next ESPN.”
The irony, of course, is that Simmons had a 14-year run at ESPN, which ended in, shall we say, a mess.
In a 2019 interview with Adweek, Simmons pointed to how his company was picking up the ball where, perhaps, ESPN had fumbled.
“We’re trying to create a multimedia site, and that’s why I bristle when people think all the revenue we make is from podcasts,” he said at the time. “It’s just not true. Our website is really successful right now, and for four straight months we’ve had our best months. From a video side, we have a ton of opportunities right now, and we’ve been exploring a lot of them. Our goal has always been to create a multimedia digital company, and after three-plus years, I feel like we’re on our way.”
Spotify declined to comment for this story, though at an Adweek CMO event taking place in New York City today, Spotify’s global vice president of partner solutions Danielle Lee said, “We are doubling down on audio and really making a move into the podcast space. … It’s about expanding our business beyond music.”
For his part, Simmons tweeted:
Industry sources are interested to see if The Ringer can leverage Spotify’s user registration and data, and whether Spotify will invest in exclusive content.
“It’s a good result for The Ringer,” said a buyer requesting anonymity because they were not permitted to talk to the press. “If you look at how the industry is going towards the ending of third-party cookies, publisher monetization will get harder and harder. It’s a good out for them.”
John Lambros, president and managing partner at media investment bank GCA Global (which wasn’t involved in this deal), views the acquisition through two lenses: the backdrop of the evolving streaming music marketplace, and the recent shakeups in sports media.
“It’s amazing how Spotify jumped so far in front of the podcast market. They’re almost like Amazon—they have a platform where they can see how these podcasts are performing,” Lambros said. “They have a good set of data in knowing of what they’re getting in advance.”
Much more interesting, Lambros believes, is looking at the deal less from the standpoint of Spotify and more in the category of Barstool and what’s happening with sports media at large.
“I’d argue that this is where sports is going,” he said. “How do you target the under-30 sports enthusiast today? They’re at Bartstool, The Ringer, doing sports betting, doing activities that aren’t watching full-length games or even shows on ESPN.”
Indeed, last week, Barstool took on a new investor in Penn National Gaming, a regional operator of casinos and racetracks, and just a couple months ago, The Publisher’s Tribune, Derek Jeter’s sports site, was picked up by Minute Media.