Why Spotify Is Buying Bill Simmons' The Ringer

Spotify (NYSE: SPOT) is making an acquisition -- one that may seem a little odd, at first glance, for a tech company that specializes in music streaming. Spotify has agreed to a deal with The Ringer, a sports and entertainment blogging site founded by Bill Simmons. Terms of the transaction have not been disclosed, but the sale has been reported by some media outlets to be valued at as much as $250 million.

Simmons' staff at The Ringer is full of talented sportswriters, but Spotify's purchase was probably not inspired by any particular love of sports journalism. What Spotify really cares about is the popularity of Simmons himself with a certain type of sports fan -- the podcast-loving type.

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Source Fool.com