Subscribe to the Crunchbase Daily
The satellite radio company will pay $265 million in cash for Stitcher when the deal closes, and it could pay up to an additional $60 million to Scripps, depending on how Stitcher meets certain financial metrics this year and in 2021, according to a statement from the company.
The acquisition of Stitcher will help bolster SiriusXM in the podcast and digital audio ad marketplaces, the company said.
“The addition of Stitcher is an important next step as we continue to develop and strengthen our offering in the fast-growing podcasting market,” 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. 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.”
Since being founded in 1990, SiriusXM has acquired a number of other audio-related companies, most recently podcast hosting platform Simplecast last month and music streaming company Pandora in September 2018.
Stitcher hosts a number of popular podcasts, including “My Favorite Murder” and “Conan O’Brien Needs A Friend.” The company was founded in 2007 and backed by investors including Benchmark and New Enterprise Associates. It last raised $10 million with its Series C in September 2011, according to Crunchbase.
Correction: An earlier version of this article reported that Stitcher was bought for $4.5 million and operated under Midroll Media, which Scripps had acquired for $50 million. Stitcher was combined with Midroll, so the return on Scripps’ investment, though large, isn’t as large as previously implied.
Illustration: Dom Guzman