Sirius Nears Deal for Scripps Podcast Unit -- WSJ
July 07 2020 - 2:02AM
Dow Jones News
By Anne Steele
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 7, 2020).
Sirius XM Holdings Inc. is near a deal to buy E.W. Scripps Co.'s
Stitcher Inc. podcasting unit for around $300 million, according to
people familiar with the matter.
The satellite-radio giant is working to expand into the rapidly
growing podcasting industry, following similar moves by media and
tech companies including Spotify Technology SA and iHeartMedia
Inc.
Stitcher runs a free podcast listening app and a premium $4.99
monthly service that lets subscribers listen to podcasts without
ads. It also owns podcast networks including Earwolf and Stitcher
Podcasts, with 50 shows including "Conan O'Brien Needs a Friend"
and "Freakonomics Radio." In partnership with outside networks and
shows, Stitcher distributes and sells advertising for more than 250
podcasts -- including "My Favorite Murder," "WTF With Mark Maron"
and "Oprah's SuperSoul Conversations" -- through its Midroll Media
advertising unit.
Sirius generates most of its revenue from subscriptions to its
satellite radio service but in 2018 agreed to buy internet-radio
streaming company Pandora Media Inc. for $3 billion -- adding a
business more reliant on advertising and with podcast aspirations
of its own to its lineup.
Last year Sirius signaled its intent to expand its podcast
business with a deal in which Walt Disney Co.'s Marvel
Entertainment is creating exclusive podcasts for the company's
satellite radio and streaming services.
U.S. ad revenue from podcasts rose an estimated 42% to $678.7
million last year, according to the Interactive Advertising Bureau,
and is projected to rise to $863.4 million this year and exceed $1
billion by 2021.
Scripps bought Stitcher in 2016 for $4.5 million in cash and
then combined it with Midroll Media, the podcast-advertising
company it had acquired the year before for $50 million.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
July 07, 2020 02:47 ET (06:47 GMT)
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