SiriusXM is acquiring podcast platform Stitcher for $325 million

Marco Green
July 14, 2020

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. In an effort to ride the wave, SiriusXM has announced its acquisition of Stitcher, a mainstay in the world of podcasting. SiriusXM will be paying $325 million to Stitcher's parent company (via Variety). Once the deal closes, all Stitcher employees will move to SiriusXM.

It says that more than two-thirds of Stitcher's revenue comes from Stitcher's podcast advertising platform, Midroll. Scripps, which entered the podcasting space quite early, had acquired Stitcher in 2016 for just $4.5 million.

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. "Over and over, this strategy has proven effective as well as profitable for the company and its shareholders". Other deals in the sector include iHeartMedia's $55 million acquisition of podcast pioneer Stuff Media (parent of HowStuffWorks) in 2018, and radio broadcaster Entercom's purchase previous year of Cadence13 and Pineapple Street Media. However, the growth of paid radio subscribers is falling as free offerings like podcasts find more popularity than ever before.

Details: The deal includes $265 million of cash upfront, with an earnout of up to $30 million based on 2020 financial results (paid in 2021) and an earnout of up to $30 million based on 2021 financial results (paid in 2022).

Other reports by Click Lancashire

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