RTTNews | Jul 13, 2020 08:16AM EDT

08:15 Monday, July 13, 2020 (RTTNews.com) - The E.W. Scripps Co. (SSP) announced Monday that it 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. All Stitcher employees will also move to SiriusXM.

Scripps was an early entrant into podcasting, acquiring Midroll in 2015 for $55 million and the Stitcher app in 2016 for $4.5 million.

The sale price of $325 million includes $265 million of cash upfront, earnout of up to $30 million based on 2020 financial results and paid in 2021 as well as earnout of up to $30 million based on 2021 financial results and paid in 2022.

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.

The transaction, which combines the Leading audio entertainment company in the U.S. with a pioneer in podcast production, distribution, and ad sales, is expected to close in the third quarter, pending Hart-Scott-Rodino clearance.

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 transaction will also further extend the substantial reach of SiriusXM in the digital audio ad marketplace.

Read the original article on RTTNews ( https://www.rttnews.com/3110476/scripps-agrees-to-sell-podcasting-business-to-siriusxm-for-325-mln-quick-facts.aspx)

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com All Rights Reserved