New York Times Acquires Serial Productions As It Looks To Grow Podcast Business

The New York Times Company NYT is acquiring the producer of "Serial" podcast, it announced Wednesday.

What Happened

The newspaper didn't disclose the terms of the deal. People familiar with the matter told the Wall Street Journal that the transaction could be worth as much as $50 million "depending on milestones and performance metrics." The Times said it was also entering a strategic alliance with the radio program "This American Life." The collaboration would allow the companies to join efforts on marketing and advertising sales, it added. "We've seen the power that audio can have in building deeper connections with our audience and we're committed to bringing listeners the best audio journalism in the world," the newspaper's Chief Operating Officer Meredith Kopit Levien said in a statement.

Why It Matters

The Times has made a string of moves to grow its podcasting business this year. The publication acquired Audm, a subscription-based app to convert long-form articles into narrated audio, in March this year. It also hired the co-creator of National Public Radio's "Invisibilia" podcast, Alix Spiegel, and launched an opinions podcast with technology journalist Alix Spiegel, as noted earlier by the Journal. The Times says its most popular podcast is "The Daily," and receives about 3 million downloads a day. According to the New York-based company, it has "now brought together three of the most important audio brands in the world," with Serial Productions and This American Life joining the Times umbrella alongside The Daily.

Price Action

NYT shares closed 1.75% lower at $44.84 on Wednesday. The shares have a 52-week high of $46.33 and a 52-week low of $26.13.