Scripps Sells Stitcher To SiriusXM
• The E.W. Scripps Company has entered into an agreement with SiriusXM to sell its Stitcher podcast business for $325 million, a return of more than double Scripps’ investment in podcasting over the last five years. The Stitcher company includes three distinct podcast business lines: the Midroll advertising rep firm; owned-and-operated podcast networks including the comedy-focused Earwolf; and the Stitcher podcast listening platform.
Scripps was an early entrant into podcasting, acquiring Midroll in 2015 for $55 million and the Stitcher app in 2016 for $4.5 million. Stitcher’s 2019 revenue was $72.5 million.
The opportunity for Stitcher and its employees to join a large pure-play audio company ensures it will expand upon its success, said Scripps President & CEO Adam Symson, who commented, “This sale is consistent with Scripps’ track record of growing businesses that capitalize on the evolution of consumers’ media habits and then unlocking shareholder value through spinoffs, exits and continued organic growth. Over and over, this strategy has proven effective as well as profitable for the company and its shareholders.” He added, “Today’s announcement, and the metrics around this sale, are an affirmation of our investment-for-growth strategy. We are firmly committed to our national businesses and are enthusiastic about the opportunities we see ahead in digital audio, over the top and over the air television.”
Scripps EVP/CFO Lisa Knutson added, “As a result of this transaction, Scripps is improving our leverage ratio through higher company EBITDA and garnering cash we can use toward debt reduction, which continues to be our highest priority.” The transaction is expected to close in the third quarter, pending Hart-Scott-Rodino clearance. LionTree Advisors has acted as exclusive advisor to Scripps in the sale process, and BakerHostetler is serving as legal counsel.
