SiriusXM announced today that it has entered an agreement with The E.W. Scripps Company to acquire podcasting company and app Stitcher for $325 million. The deal also includes ad sales network Midroll Media and the comedy podcasting network Earwolf.
“The addition of Stitcher is an important next step as we continue to develop and strengthen our offering in the fast-growing podcasting market,” said Jim Meyer, SiriusXM CEO. “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. Stitcher has a talented team with deep experience in the podcast space, and we look forward to working with them to better meet the needs of creators, advertisers, and listeners.”
Scripps President/CEO Adam Symson said, “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. Over and over, this strategy has proven effective as well as profitable for the company and its shareholders.”
He added, “Today’s announcement, and the metrics around this sale, are an affirmation of our investment-for-growth strategy. We are firmly committed to our national businesses and are enthusiastic about the opportunities we see ahead in digital audio, over the top and over the air television.”
Stitcher creates original podcasts, operates multiple content networks that each target a specific genre and audience and provides podcast ad agency services for leading shows. Through its Midroll Media advertising network, Stitcher acts as a sales and marketing representative to connect advertisers and podcasts based on the advertiser’s desired target audience. Stitcher also owns and operates a popular mobile app listening platform where consumers can stream the latest podcasts ranging from news, sports, talk, and entertainment shows on-demand and free of charge. Users can pay for Stitcher’s monthly or annual premium subscription, which gives them access to premium content including exclusive, ad-free, and bonus podcast episodes, along with 300+ comedy albums.
Under the terms of the asset purchase agreement, at the closing, SiriusXM will make a cash payment of $265 million to Scripps. The agreement provides that SiriusXM will potentially make up to $60 million in additional contingent payments based on Stitcher achieving certain financial metrics in 2020 and 2021. The transaction is expected to close in the third quarter of 2020, subject to receipt of required regulatory approvals and the satisfaction of other customary closing conditions.
Top Stitcher podcasts include Freakonomics Radio, My Favorite Murder, 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.
