E.W. Scripps Co. is entered into an agreement with SiriusXM to sell podcast industry leader Stitcher for $325 million. Scripps
and combined it with Midroll Media, which it bought for $55 million the year prior. According to E.W. Scripps, the $325 million price tag represents a return of more than 100% in its investment in podcasting over the last five years.
Stitcher’s 2019 revenue was $72.5 million, according to Scripps, representing a compound annual growth rate of 52% from 2016-19. “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,” Scripps president/CEO Adam Symson said in announcing the pact. “Over and over, this strategy has proven effective as well as profitable for the company and its shareholders.
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. Sale price of $325 million, with $265 million of cash upfront; earnout of up to $30 million based on 2020 financial results and paid in 2021; earnout of up to $30 million based on 2021 financial results and paid in 2022. Full price representing an internal rate of return after taxes in the mid-20% range and cash-on-cash return of more than 2x, which incorporates the purchase prices for Midroll and Stitcher of $59.
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