Scripps Completes Sale Of Stitcher To SiriusXM
The E.W. Scripps Co. closed today on its sale of Stitcher to SiriusXM for $325 million.
The sale price includes $265 million of cash up front, with an earnout of up to $30 million based on 2020 financial results and paid in 2021 and an earnout of up to $30 million based on 2021 financial results and paid in 2022.
The Stitcher company includes the Midroll advertising rep firm; owned-and-operated podcast networks including the comedy-focused Earwolf; and the Stitcher podcast listening platform.
An early entrant into podcasting, Scripps acquired Midroll in 2015 for $55 million and the Stitcher app in 2016 for $4.5 million. Since then, Stitcher has been a leader in the fast-growing podcast industry, growing revenue at a CAGR of 52% from 2016-19. Stitcher’s 2019 revenue was $72.5 million.
Scripps continues its focus on the national television marketplace. The company recently announced its plans to create a full-scale national television networks business through the acquisition of Ion Media, which it will combine with the Katz networks and Newsy. Together, the new national networks will reach nearly every American through free over-the-air broadcast, cable/satellite, over-the-top and digital distribution. The Ion acquisition is expected to close in the first quarter of 2021, pending regulatory approval.
LionTree Advisors acted as exclusive adviser to Scripps in the Stitcher sale process, and BakerHostetler served as legal counsel.