SiriusXM Acquisition Of Stitcher Now Official, Price Tag $325 Million

$325 Million

SIRIUSXM's acquisition of podcast platform STITCHER from THE E.W. SCRIPPS CO. (NET NEWS 7/7) is now official and it has a price tag attached, as the companies disclose that SIRIUSXM is paying $325 million, over double the $55 million SCRIPPS paid for the company, which includes sales component MIDROLL MEDIA, the EARWOLF comedy podcast network, and the STITCHER app, along with production of original shows and representation of several production companies and networks, in 2016. SIRIUSXM is paying $265 million cash upfront, plus an earnout based on financial results of up to $30 million for each of 2020 and 2021, payable in the following years. All STITCHER employees will be joining SIRIUSXM upon closing.

"The addition of STITCHER is an important next step as we continue to develop and strengthen our offering in the fast-growing podcasting market," said SIRIUSXM CEO JIM MEYER. "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."

SCRIPPS Pres./CEO ADAM SYMSON said, "This sale is consistent with SCRIPPS' track record of growing businesses that capitalize on the evolution of consumers' media habits and then unlocking shareholder value through spinoffs, exits and continued organic growth. Over and over, this strategy has proven effective as well as profitable for the company and its shareholders.

"Today's announcement, and the metrics around this sale, are an affirmation of our investment-for-growth strategy. We are firmly committed to our national businesses and are enthusiastic about the opportunities we see ahead in digital audio, over the top and over the air television."

SCRIPPS EVP/DFO LISA KNUTSON added, "As a result of this transaction, SCRIPPS is improving our leverage ratio through higher company EBITDA and garnering cash we can use toward debt reduction, which continues to be our highest priority."

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