Benzinga | Jul 13, 2020 08:03AM EDT

Scripps To Sell SiriusXM For $325M

CINCINNATI, July 13, 2020 /PRNewswire/ --The E.W. Scripps Company (NASDAQ:SSP) has entered into an agreement with SiriusXM to sell podcast industry leader Stitcher 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. 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.

The opportunity for Stitcher and its employees to join a large pure-play audio company ensures it will expand upon its success, Scripps President and CEO Adam Symson said.

"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," said Symson. "Over and over, this strategy has proven effective as well as profitable for the company and its shareholders.

"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."