SiriusXM invests $325M to acquire Stitcher podcast business to rival Spotify

SiriusXM is acquiring the podcast and Internet radio service, Stitcher, from E.W. Scripps Co. for $325 million, the companies announced Monday.

This move will help Sirius work well in a competitive environment. Stitcher offers a free podcast listening app in addition to a premium service for $4.99 a month with bonus content and ad-free listening. It also has a podcast network of its own with dozens of original shows, including Conan O’Brien Needs a FriendFreakonomics Radio, and Literally! With Rob Lowe. Stitcher’s advertising unit, Midroll Media, distributes and sells advertising for roughly 250 shows, including WTF With Marc Maron and My Favorite Murder.

Sirius expanded outside its traditional revenue stream of satellite radio subscriptions in 2018 with the acquisition of Pandora for $3 billion. It followed that up in 2019 with a multiyear deal with Disney, enabling Sirius and Pandora to produce original podcasts with Marvel Entertainment.

Stitcher was purchased by Scripps in 2016 for $4.5 million. Scripps then went on to combine it with Midroll, which it had bought the year before for $50 million.

Source
https://fortune.com/2020/07/13/siriusxm-stitcher-podcast-companies-acquisition-scripps/

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