• by Karlene Lukovitz  @KLmarketdaily, February 12, 2020

Spotify Technology SA didn’t reveal the terms of its acquisition of the sports and pop-culture podcaster/online outlet The Ringer, but Bloomberg is now reporting that the price tag is 180 million euros -- or nearly $200 million -- up front, with $50 million more to follow. 

The report, based on a knowledgeable source, notes that Spotify is expected to detail the acquisition terms in filing a regulatory filing soon. 

As MediaPost's Mobile Insiderreported last week, sportswriter, analyst and podcaster Bill Simmons was The Ringer’s largest shareholder, and AT&T’s HBO division owned a 10% stake. 

Spotify and the Ringer were already collaborating to produce “The Hottest Take,” a daily show that is Spotify’s most popular. The acquisition deal requires Simmons to continue working at Spotify for an undisclosed period. 

With The Ringer buy, Spotify, which has 124 million subscribers (up 29% versus 2018), has now spent more than $600 million on companies to expand its podcasting business. It previously acquired podcast producers Gimlet Media and Parcast, as well as podcasting tools creator Anchor.   

Although Spotify just reported that its fourth-quarter sales increased 24%, its earnings fell short of analysts’ expectations. 

The owner of the world’s largest paid music service “loses money because record labels, publishers and artists collect more than 65 cents out of every $1 in revenue,” whereas podcasting can boost its ad sales and potentially “dilute the music industry’s take,” notes Bloomberg.