Podcasting is the fastest growing sector in audio entertainment, said SiriusXM, which announced it purchased podcasting platform Stitcher for $325 million.
SiriusXM said the acquisition gives it, “the largest addressable audience in the U.S. across all categories of digital audio – music, sports, talk, and podcasts.” All-in-all SiriusXM will reach over 150 million listeners.
The transaction will also improve the satellite radio company’s advertising reach.
SiriusXM CEO Jim Meyer, said, “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.”
Top Stitcher podcasts include Freakonomics Radio, My Favorite Murder, How Did This Get Made?, SuperSoul Sunday from The Oprah Winfrey Network, Office Ladies, Conan O’Brien Needs a Friend, Literally! with Rob Lowe, LeVar Burton Reads, Comedy Bang! Bang!, and WTF with Marc Maron.
Under the terms of the asset purchase agreement, SiriusXM will make a cash payment of $265 million to Stitcher’s current owner, E.W. Scripps Company. The agreement provides that SiriusXM will pay up to $60 million in additional contingent payments based on Stitcher achieving certain financial goals in 2020 and 2021.
The transaction is expected to close in the third quarter of 2020.
See the full SiriusXM press release here.