It’s official, SiriusXM plans to acquire podcast biggie Stitcher later this year.
“With the acquisition, SiriusXM’s combined properties will contain the largest addressable audience in the U.S. across all categories of digital audio — music, sports, talk, and podcasts,” the company stated Monday.
SiriusXM has been aggressive in remaking itself well beyond its roots as a satellite-based company. In 2018 it acquired AdsWizz, a digital audio advertising technology company. Last year it completed its acquisition of streaming player Pandora. More recently it acquired podcast management and analytics platform Simplecast.
SiriusXM will pay $265 million to Stitcher’s owner E.W. Scripps, plus up to another $60 million based on Stitcher’s performance this year and next. The transaction is expected to close in the third quarter.
“The transaction will also further extend the substantial reach of SiriusXM in the digital audio ad marketplace,” it stated. “The SiriusXM and Pandora owned-and-operated digital platforms, combined with the company’s exclusive ad sales arrangement with SoundCloud for the U.S., and the Stitcher and Midroll networks that are subject to the agreement, will reach over 150 million listeners.” Midroll is a podcast ad network that is part of Stitcher.
The company said in its announcement that it “will be better positioned to advance the podcast ad market and help solve some of its critical challenges through precision targeting, ad efficiency and improved measurement capabilities via a streamlined ad marketplace.”
Stitcher was founded in 2007. It creates podcasts, operates targeted content networks and offers podcast ad agency services for shows, as well as offers its own popular podcast app.
[Related: “Stitcher’s Flexible New Facility in Manhattan”]