SiriusXM to buy Stitcher podcast business for up to $325M
Latest push into podcast business following Pandora purchase, Disney deal
Sirius XM Holdings said Monday it will buy Stitcher, E.W. Scripps' podcast business, for up to $325 million US, as the satellite radio company pushes further into the podcast space.
Stitcher streams podcasts such as Freakonomics Radio, Conan O'Brien Needs a Friend, My Favorite Murder, SuperSoul Sunday from the Oprah Winfrey Network, LeVar Burton Reads and WTF With Marc Maron.
Stitcher also owns and operates a mobile app listening platform where consumers can stream a range of podcasts, including news, sports, talk and entertainment shows, on-demand and free of charge with ads (or for a subscription fee without).
"The addition of Stitcher is an important next step as we continue to develop and strengthen our offering in the fast-growing podcasting market," Jim Meyer, chief executive officer of SiriusXM, said in a news release.
Stitcher currently competes with the podcast libraries of companies such as Apple and Spotify.
SiriusXM, which bought online music service Pandora Media Inc in a $3.5 billion (all figures US) deal in 2018, has been investing to bolster its podcast business.
Last year, it signed a multi-year deal with Walt Disney Co, allowing it to create exclusive weekly podcasts, including five new series on popular Marvel characters such as Wolverine, Hawkeye, Black Widow and Star-Lord.
Under terms of the deal, SiriusXM will pay $265 million in cash to Scripps, as well as up to $60 million in additional payments based on Stitcher achieving certain financial metrics in 2020 and 2021. Stitcher's 2019 revenue was $72.5 million.
Scripps said in a news release that the $325-million figure represents a return of more than double its investment in podcasting over the last five years.
The deal is expected to close in the third quarter of 2020.
With files from CBC News