SiriusXM (SIRI) has scooped up E.W. Scripps’ (SSP) Stitcher podcast platform for $325 million.

The purchase is valued at more than double what E.W. Scripps invested in podcasting over the last five years with the deal consisting of $265 million in cash upfront and two earnout payouts of up to $30 million, depending on fiscal results to be paid out in 2021 and 2022.

Through the deal, SiriusXM will also pickup Earwolf, Scripps’ comedy-focused platform, and Midroll, its advertising arm.

Stitcher is a free podcasting app that is also offered with a premium $4.99 monthly service without ads. Shows on the platform, include “Freakonomics Radio,” “SuperSoul Sunday from The Oprah Winfrey Network,” and “Conan O’Brien Needs a Friend.”

“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,” Adam Symson, president and CEO at Scripps, said in a statement. “Over and over, this strategy has proven effective as well as profitable for the company and its shareholders.”

Scripps acquired the Stitcher app for $4.5 million in 2016 and has seen its revenue grow to $72.5 million in 2019.

The purchase is expected to close in the third quarter of 2020 with all Stitcher employees moving under the SiriusXM umbrella.

Shares of SiriusXM were trading at $5.73 as of 12:01 p.m. ET, up $0.03 or 0.53% while shares of E.W. Scripps were trading at $9.38, up $0.48 or 5.39%.

SiriusXM
SiriusXM has bought podcasting platform Stitcher. A view inside SiriusXM Studios on March 04, 2019 in New York City. Getty Images/Noam Galai
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