By Dave Sebastian and Anne Steele

Sirius XM Holdings Inc. said it has agreed to buy E.W. Scripps Co.'s Stitcher Inc. podcasting unit for $265 million in cash.

The satellite-radio giant's foray into the rapidly growing podcasting industry follows similar moves by media and technology companies, including Spotify Technology SA and iHeartMedia Inc. Sirius said it could pay up to $60 million more if Stitcher achieves certain financial metrics in 2020 and 2021.

The Wall Street Journal last week reported that the two companies were nearing a deal.

Sirius said the transaction, expected to close in the third quarter, would enable it to reach more than 150 million listeners.

"With Stitcher, we will expand our digital audio advertising presence and look to generate new ways for creators to find and connect with their audiences," Sirius Chief Executive Jim Meyer said.

Stitcher runs a free podcast listening app and a premium $4.99 monthly service that lets subscribers listen to podcasts without ads. It owns podcast networks such as Earwolf, Stitcher Originals and Witness Docs, and its shows include "Freakonomics Radio," "SuperSoul Sunday from The Oprah Winfrey Network" and "Conan O'Brien Needs a Friend." With outside networks and shows, Stitcher distributes and sells advertising for more than 250 podcasts 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.