After reports last week from the Wall Street Journal, SiriusXM confirm a deal with Stitcher for $25m more than initially expected.
Originally owned by Deezer, Stitcher was sold to E.W Scripps in 2016 for $4.5m. E.W Scripps merged the platform with Midroll Media. Last week, reports claimed SiriusXM were to buy Sticher for $300m. We now have official confirmation of the deal worth $325m from SiriusXM. This will be made up of $265m in cash and a potential $60m in contingent payments based on Stitcher achieving certain finantial metrics in 2020 and 2021. The deal is expected to close in Q3 2020 after regulatory approval.
The transaction will advance and deepen SiriusXM’s position in podcasting, the fastest-growing sector in the audio entertainment ecosystem.SiriusXM – Press Release
With the acquisition, SiriusXM’s combined properties will contain the largest addressable audience in the U.S. across all categories of digital audio – music, sports, talk, and podcasts. The transaction will also further extend the substantial reach of SiriusXM in the digital audio ad marketplace. The SiriusXM and Pandora owned-and-operated digital platforms, combined with the company’s exclusive ad sales arrangement with SoundCloud for the U.S., and the Stitcher and Midroll networks that are subject to the agreement, will reach over 150 million listeners. Upon completion of the transaction, SiriusXM will be better positioned to advance the podcast ad market and help solve some of its critical challenges through precision targeting, ad efficiency, and improved measurement capabilities via a streamlined ad marketplace.
The addition of Stitcher is an important next step as we continue to develop and strengthen our offering in the fast-growing podcasting market. 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.Jim Meyer, SiriusXM CEO
IAB recently reported US-based podcast revenues were at $708.1m last year, with significant growth this year potentially pushing that number close to $1bn.