SiriusXM to Buy Stitcher Podcasting Unit From Scripps -- Update
July 06 2020 - 7:21PM
Dow Jones News
By Anne Steele
Sirius XM Holdings Inc. is near a deal to buy E.W. Scripps Co.'s
Stitcher Inc. podcasting unit for around $300 million, according to
people familiar with the matter.
The satellite-radio giant is working to expand into the rapidly
growing podcasting industry, following similar moves by media and
tech companies including Spotify Technology SA and iHeartMedia
Inc.
Stitcher runs a free podcast listening app and a premium $4.99
monthly service that lets subscribers listen to podcasts without
ads. It also owns podcast networks including Earwolf and Stitcher
Podcasts. In partnership with outside networks and shows, Stitcher
distributes other podcasts and sells advertising for them through
its Midroll Media advertising unit.
Sirius generates most of its revenue from subscriptions to its
satellite radio service but in 2018 agreed to buy internet-radio
streaming company Pandora Media Inc. for $3 billion -- adding a
business more reliant on advertising and with podcast aspirations
of its own to its lineup.
Last year Sirius signaled its intent to expand its podcast
business with a deal in which Walt Disney Co.'s Marvel
Entertainment is creating exclusive podcasts for the company's
satellite radio and streaming services.
U.S. ad revenue from podcasts rose an estimated 42% to $678.7
million last year, according to the Interactive Advertising Bureau,
and is projected to rise to $863.4 million this year and exceed $1
billion by 2021.
Scripps bought Stitcher in 2016 for $4.5 million in cash and
then combined it with Midroll Media, the podcast-advertising
company it had acquired the year before for $50 million.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
July 06, 2020 19:06 ET (23:06 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Sirius XM (NASDAQ:SIRI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Sirius XM (NASDAQ:SIRI)
Historical Stock Chart
From Sep 2023 to Sep 2024