Podcast Advertising and Sports Podcast Advertising M&A Transactions and Valuations

Between Q1 2020 and Q2 2024, $9 billion was deployed by acquirers in sports podcasting and sports podcast advertising. Podcasting involves the creation of audio files that are available to listeners online through a computer or, more commonly, a mobile device. 

Podcasting is one of the most popular forms of digital media and is an increasingly common way for people to consume news and sports content. Over 70 million Americans report listening to podcasts at least once a month and 22% of US sports fans say they listen to sports podcasts weekly. 

Most transactions conducted and capital invested in the sports podcast and sports podcasts advertising sector were by US- and European-based acquirers. Additionally, strategic acquirers deployed over 79% of the transactions conducted. The median deal size has decreased significantly, indicating demand for smaller transactions. 

Sports podcasting and sports podcast advertising shareholders should be aware of exit opportunities presented by strategic acquirers from the US and Europe. 

• The valuation multiples are based on a sample set of publicly listed podcasting and podcast advertising companies, as well as M&A transactions in the sector. The data was collected on August 1, 2024.
• The sample set trades at an enterprise value to EBITDA multiple range of between 10x and 22x with an increase in average multiples as the enterprise value increases.
• Average enterprise value to revenue multiples ranged from 1x and 4x.   

• The median transaction size has ranged significantly with a peak in Q3 2021 of over $130 million. This was driven by large transactions conducted by private equity firms. 
• Q3 2020 to Q2 2021 saw a significant median transaction size that ranges between $16 million and $25 million. 
• Since Q3 2022, the median transaction size has remained under $5 million, indicating an abundance of smaller transactions. 

• Between Q1 2020 and Q2 2024, $9 billion was deployed across 480 podcasting and podcasting advertising acquisitions. The average transaction value was $19 million, highlighting the volume of transactions in middle and lower-middle markets.  
• The most significant deployment of capital, $1.8 billion, occurred in Q3 of 2020 with the largest deal count in Q3 of 2023, 36 transactions. 
• While the deal count shows variability, it remains above 20 per quarter, except for the drop in Q2 of 2024 and Q1 and Q2 of 2020. This consistency indicates a stable interest in deal-making, even as the investment amounts fluctuate.
• PENN Entertainment’s acquisition of Barstool Sports for $388 million, completed on February 17, 2023, was one of the largest and most publicized transactions in the sector. Barstool Sports was then acquired by the former CEO David Portnoy on August 8, 2023, for an undisclosed amount.

• Transactions by strategic acquirers in M&A transactions were dominated by deal count in the sector. They contributed 79% of all capital in the sectors while conducting 52% of all capital invested. This highlights the appetite for smaller acquisitions. 
• Large strategic acquirers in the sports podcasting and sports podcast advertising sector include Amazon, SiriusXM, and PENN Entertainment. 
• Private equity firms and other financial acquirers conducted 21% of M&A transactions and contributed 52% of capital deployed in the sector, indicating demand for larger acquisitions.

• US-based acquirers dominated the capital invested in sports podcasting and sports podcast advertising, with over $5 billion across 52% of the deals in the category. This could be due to a variety of factors, including the popularity of sports podcasts, the abundance of established podcasts, and the demand by media companies and advertisers to reach new audiences and select demographics.  
• European acquirers contributed 31% of all M&A transactions and 33% of capital invested. Western Europe, particularly the United Kingdom, Ireland, and Germany contributed the majority of capital invested in the sector. The significant amount of capital invested and high deal count indicate an appetite for sports podcasting and sports podcast advertising transactions as the sector develops in Europe. 
• The rest of the world exhibits a noticeable spike in the deal count, but an exceedingly small share of the capital invested. This implies a wide distribution of smaller deals across various countries not individually listed. These smaller markets collectively engage in a considerable number of sports podcasting and sports podcast advertising transactions, but each deal tends to be small, reflecting diverse capital market activities.

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Podcasts are reaching an increasing percentage of the population and are growing in importance. Since 2023, significant M&A activity has occurred without a large amount of capital deployed. This shows the occurrence of smaller transactions within the sector. 

Founders and shareholders of sports podcasting and sports podcast advertising companies should be mindful of exit opportunities. The median transaction size is low and the EBITDA multiple ranges between 10x and 22x. The most active acquirers in the sector are strategic acquirers who contribute the majority of capital and deal flow and are mostly based in the US and Europe.

Sources: Pitchbook Data, Jahani and Associates (1), (2), Demand Sage.