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Photo: Spotify

Spotify announced Wednesday plans to acquire The Ringer, a sports media company founded by former ESPN personality Bill Simmons.

Why it matters: The acquisition speaks to Spotify's massive investment in podcasting over the past year, as the company aims to expand its offering solely from music to audio including podcasts.

Details: This is Spotify's first major investment in a podcast content company. Deal terms were not disclosed.

  • Content: The move will help Spotify expand into global and local sports content. The Ringer currently owns and produces more than 30 podcasts, including its two most popular series, “The Bill Simmons Podcast” and "The Rewatchables." The company has leveraged some of its strong titles to broker other video and film deals.
  • Employees: All of The Ringer's roughly 90 employees are expected to join Spotify. No layoffs are planned with the deal.
  • Exclusivity: The Ringer shows that are currently exclusive on podcast platforms like Luminary and Pandora will remain exclusive. The programs available on all podcast platforms will be available everywhere for the foreseeable future. There may be some podcasts from The Ringer that become Spotify exclusives in the future, although that's not expected to be the case for the most part.

The big picture: This is Spotify's fourth major investment in a podcasting company in the past year. Its series of investments began last February with technology and production, and have more recently transitioned to content.

  • Last year, Spotify paid $340 million to acquire Gimlet, one of the fastest-growing podcast production studios, and Anchor, among the fastest-growing podcast production and hosting studios.
  • It later spent $56 million to acquire Parcast, a story-based podcast studio.
  • Spotify also recently announced a partnership with the Wall Street Journal to co-produce a podcast called "The Journal."

Be smart: While the new deal terms were undisclosed, it's hard to imagine that Spotify didn't pay at least tens of millions of dollars. The Ringer's podcast revenues surpassed $15 million in 2018 and the company says it's profitable.

  • Last year, Spotify said it would invest at least $500 million to boost its podcast business. Its purchases of three studios last year totaled about $400 million, meaning the company had room financially to make more acquisitions within its initial investment commitment range.

What they're saying: "We spent the last few years building a world-class sports and pop culture multimedia digital company and believe Spotify can take us to another level," Simmons said in a statement.

  • "We look forward to putting the full power of Spotify behind The Ringer as they drive our global sports strategy," said Dawn Ostroff, chief content officer at Spotify.

What's next: The deal is expected to close in the first quarter of this year.

Go deeper:

Go deeper

Updated 3 hours ago - Politics & Policy

In photos: The Biden and Harris inauguration

President Biden and first lady Jill Biden watch a fireworks show on the National Mall from the Truman Balcony at the White House on Wednesday night. Photo: Chip Somodevilla/Getty Images

President Biden signed his first executive orders into law from the Oval Office on Wednesday evening after walking in a brief inaugural parade to the White House with First Lady Jill Biden and members of their family. He was inaugurated with Vice President Kamala Harris at the U.S. Capitol on Wednesday morning.

Why it matters: Many of Biden's day one actions immediately reverse key Trump administration policies, including rejoining the Paris Agreement and the World Health Organization, launching a racial equity initiative and reversing the Muslim travel ban.

Republicans pledge to set aside differences and work with Biden

President Biden speaks to Sen. Mitch McConnell after being sworn in at the West Front of the U.S. Capitol on Wednesday. Photo: Erin Schaff-Pool/Getty Images

Several Republicans praised President Biden's calls for unity during his inaugural address on Wednesday and pledged to work together for the benefit of the American people.

Why it matters: The Democrats only have a slim majority in the Senate and Biden will likely need to work with the GOP to pass his legislative agenda.

The Biden protection plan

Joe Biden announces his first run for the presidency in June 1987. Photo: Howard L. Sachs/CNP/Getty Images

The Joe Biden who became the 46th president on Wednesday isn't the same blabbermouth who failed in 1988 and 2008.

Why it matters: Biden now heeds guidance about staying on task with speeches and no longer worries a gaffe or two will cost him an election. His staff also limits the places where he speaks freely and off the cuff. This Biden protective bubble will only tighten in the months ahead, aides tell Axios.