What you need to know
- SiriusXM is buying Scripps' Stitcher and other podcast businesses for $325 million.
- As part of the deal, all Stitcher employees will be moved to SiriusXM.
- The acquisition is expected to close sometime before the end of the third quarter.
SiriusXM today signed an agreement with Scripps to acquire podcast platform Stitcher and two other podcast-related businesses. SiriusXM will be paying $325 million to Stitcher's parent company (via Variety). The two companies expect the deal to close sometime in the third quarter of the year. Once the deal closes, all Stitcher employees will move to SiriusXM.
The Stitcher business includes three different divisions: the Stitcher podcast platform, the Midroll advertising rep firm, and the comedy-focused Earwolf. Scripps, which entered the podcasting space quite early, had acquired Stitcher in 2016 for just $4.5 million.
SiriusXM Ceo Jim Meyer said in a statement:
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
The acquisition will no doubt help SiriusXM increase its presence in the podcast space in the U.S. In fact, SiriusXM says it will now have "the largest addressable audience" in the U.S. for digital audio, including music and podcasts. Stitcher, combined with SiriusXM radio and Pandora, will have around 150 million monthly listeners. SiriusXM had acquired Pandora last year for $3 billion.