October 28, 2021

The Queens County Citizen

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SiriusXM to obtain Stitcher podcast business for up to $325M

SiriusXM to buy Stitcher podcast business for up to $325M

Sirius XM Holdings said Monday it will obtain Stitcher, E.W. Scripps’ podcast enterprise, for up to $325 million US, as the satellite radio enterprise pushes further more into the podcast space.

Stitcher streams podcasts these types of as Freakonomics RadioConan O’Brien Needs a Close friend, My Favored Murder, SuperSoul Sunday from the Oprah Winfrey Community, LeVar Burton Reads and WTF With Marc Maron.

Stitcher also owns and operates a cellular application listening platform where people can stream a assortment of podcasts, which include information, sporting activities, talk and leisure shows, on-demand and absolutely free of charge with advertisements (or for a subscription charge with out).

“The addition of Stitcher is an significant following stage as we carry on to acquire and fortify our offering in the quickly-escalating podcasting market,” Jim Meyer, chief government officer of SiriusXM, said in a information launch.

Stitcher presently competes with the podcast libraries of corporations these as Apple and Spotify.

SiriusXM, which purchased on-line audio support Pandora Media Inc in a $3.5 billion (all figures US) offer in 2018, has been investing to bolster its podcast enterprise.

Final year, it signed a multi-12 months deal with Walt Disney Co, enabling it to develop special weekly podcasts, like 5 new sequence on well-known Marvel characters these kinds of as Wolverine, Hawkeye, Black Widow and Star-Lord.

Past yr, Sirius signed a deal with Walt Disney Co. to generate special weekly podcasts showcasing common Marvel characters these types of as Wolverine. (Marvel Comics)

Below conditions of the offer, SiriusXM will pay $265 million in money to Scripps, as perfectly as up to $60 million in more payments primarily based on Stitcher accomplishing selected economic metrics in 2020 and 2021. Stitcher’s 2019 profits was $72.5 million.

Scripps reported in a news launch that the $325-million determine represents a return of additional than double its investment in podcasting in excess of the previous five yrs.

The offer is anticipated to close in the 3rd quarter of 2020.

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