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Sirius XM is buying Stitcher: WSJ
Posted on Tuesday, 07 July 2020 12:33
Sirius XM Holding is close to agreeing an acquisition of EW Scripps’ podcast business Stitcher in a deal that could be worth around USD 300.00 million, people familiar with the matter told the Wall Street Journal (WSJ).
According to the sources, the transaction gives the radio satellite radio company a foothold in the growing podcast business, which is led by streaming giant Spotify.
An announcement is expected to be made later this week, the insiders observed.
Founded in 2008, Stitcher’s application has over 100,000 titles and is an alternative to Apple and Spotify podcasts.
The business also offers a premium version of the platform at a cost to the customer of USD 5.00 per month, or USD 35.00 per year, which also allows users to listen to early released programmes without adverts.
EW Scripps paid USD 5.00 million for Stitcher in 2016.
The business brought in USD 17.10 million in operating revenue in the first quarter ended 31st March 2020.
For Sirius XM, the deal comes after it purchased podcast hosting and distribution company Simplecast, which works with businesses such as Netflix, last month.
The group paid USD 3.50 billion for Pandora Media, a California-based online internet radio website operator, in 2019.
Sirius XM is the leading audio entertainment company in the US and the premier programmer and platform for subscription and digital advertising-supported audio products.
In the opening three months of 2020, the group generated adjusted earnings before interest, taxes, depreciation and amortisation of USD 639.00 million, up 12.7 per cent from USD 567.00 million in the corresponding period of 2019.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 5,181 deals targeting data processing, hosting and related services providers announced worldwide in 2020 to date.
In the largest of these, Morgan Stanley has agreed to acquire E*Trade Financial for USD 13.00 billion.
Other targets have included 58.com, GrubHub, Credit Karma and Plaid.
© Zephus Ltd