Name: SiriusXM Is Buying Stitcher in Deal Worth Up to $325 Million
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SiriusXM Is Buying Stitcher in Deal Worth Up to $325 Million

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Co. clinched a deal with to sell podcast network and producer , which includes Scripps’ other podcast-related businesses, for up to $325 million.Scripps and combined it with Midroll Media, which it bought for $55 million the year prior. According to E.W. Scripps, the $325 million price tag represents a return of more than 100% in its investment in podcasting over the last five years.Stitcher’s 2019 revenue was $72.5 million, according to Scripps, representing a compound annual growth rate of 52% from 2016-19. News of , first reported by the Wall Street Journal.The deal will build on SiriusXM’s $3 billion acquisition last year of Pandora, the music and podcast-streaming company. According to SiriusXM, with the addition of the Stitcher and Midroll networks to its existing assets, the company will reach over 150 million monthly listeners across multiple platforms.“With Stitcher, we will expand our digital audio advertising presence and look to generate new ways for creators to find and connect with their audiences,” SiriusXM CEO Jim Meyer said in a statement. All of Stitcher’s employees are to join SiriusXM after the close of the deal, expected to happen in the third quarter of 2020 subject to regulatory approvals and other usual closing conditions.The Stitcher division includes three business lines: the Midroll advertising rep firm; owned-and-operated podcast networks, including the comedy-focused Earwolf; and the Stitcher podcast listening platform.Stitcher’s podcasts include “Freakonomics Radio,” “How Did This Get Made?”, “SuperSoul Sunday” from the Oprah Winfrey Network, “Office Ladies,” “Conan O’Brien Needs a Friend,” “Literally! with Rob Lowe,” “LeVar Burton Reads,” “Comedy Bang! Bang!”, and “WTF With Marc Maron.”“This sale is consistent with Scripps’ track record of growing businesses that capitalize on the evolution of consumers’ media habits and then unlocking shareholder value through spinoffs, exits and continued organic growth,” Scripps president/CEO Adam Symson said in announcing the pact. “Over and over, this strategy has proven effective as well as profitable for the company and its shareholders.”With the deal, SiriusXM is angling to get into the U.S. podcasting big leagues. It also continues the M&A trend in the still-hot sector, following other moves including Spotify’s nearly $600 million buying spree over the past year, which has included acquisitions of Gimlet Media and . Other deals in the sector include (parent of HowStuffWorks) in 2018, and radio broadcaster .Stitcher’s mobile app lets users stream podcasts for free with ads or pay for Stitcher’s no-ads $5 monthly Premium subscription tier, which includes exclusive bonus podcast episodes and more than 300 comedy albums.Under the terms of the sale, SiriusXM is paying $265 million in cash upfront to Scripps. On top of that, the satellite radio and audio-streaming company will pay an earnout of up to $30 million based on 2020 financial results (to be paid in 2021) as well as up to $30 million based on 2021 financial results (to be paid in 2022).Want to read more articles like this one?JavaScript is required to load the comments.Loading comments...with Marc MalkinA Variety and iHeartRadio PodcastadTo help keep your account secure, please log-in again.You are no longer onsite at your organization. Please log in.For assistance, contact your corporate administrator.

Co. clinched a deal with to sell podcast network and producer , which includes Scripps’ other podcast-related businesses, for up to $325 million.Scripps and combined it with Midroll Media, which it bought for $55 million the year prior. According to E.W. Scripps, the $325 million price tag represents a return of more than 100% in its investment in podcasting over the last five years.Stitcher’s 2019 revenue was $72.5 million, according to Scripps, representing a compound annual growth rate of 52% from 2016-19. News of , first reported by the Wall Street Journal.The deal will build on...

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Todd Spangler covers digital media and technology for Variety, which he joined in 2013. A business and technology journalist with more than 25 years of experience, he previously was technology editor at cable industry publication Multichannel News and news editor at IT journal Baseline. Earlier in his career, Todd worked at tech and internet publications including PC Magazine, Interactive Week, Web Week and Internet World. He holds a bachelor's degree in journalism from Northwestern University.

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Todd Spangler

Variety is an American media company owned by Penske Media Corporation. The company was founded by Sime Silverman in New York City in 1905 as a weekly newspaper reporting on theater and vaudeville. In 1933 it added Daily Variety, based in Los Angeles, to cover the motion-picture industry. Variety.com features breaking entertainment news, reviews, box office results, cover stories, videos, photo galleries and features, plus a credits database, production charts and calendar, with archive content dating back to 1905.

SiriusXM Is Buying Stitcher in Deal Worth Up to $325 Million

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