- General
- September 24, 2018
- 5 minutes read
Pandora set for $3.5 billion acquisition by Sirius XM
Pandora CEO Roger Lynch Pandora New York headquartered Radio giant Sirius XM has now reached a deal to acquire popular…
 |
| Pandora CEO Roger Lynch Pandora
|
New York headquartered Radio giant Sirius XM has now reached a deal to acquire popular streaming service Pandora for $3.5 billion in what represents a very notable acquisition in the music streaming scene which would shoot Sirius to the position of being the largest entertainment company in the world.
This deal which involves all-stock for the purchase would combine Pandora’s 70 million monthly active users with Sirius XM’s 36 million subscribers which would provide a very competitive edge for the company in the audio entertainment market.
It also comes just a year after it completed a $480 million strategic investment into Pandora through a purchase of then newly issued Series A preferred stock.
For each Pandora stock shareholders hold, They will be getting 1.44 newly issued Sirius XM shares under the terms of this deal implying a price of $10.14 per share vs. Pandora’s Friday $9.09 close.
 |
| Pandora Chief Operating Officer David Gerbitz Pandora
|
The purchase agreement includes a “go-shop” provision where Sirius “may actively solicit, receive, evaluate and potentially enter negotiations with parties that offer alternative proposals following the execution date of the definitive agreement.”
“We have long respected Pandora and their team for their popular consumer offering that has attracted a massive audience, and have been impressed by Pandora’s strategic progress and stronger execution. We believe there are significant opportunities to create value for both companies’ stockholders by combining our complementary businesses.” Sirius XM CEO Jim Meyer said in a statement.
“The addition of Pandora diversifies SiriusXM’s revenue streams with the U.S.’s largest ad-supported audio offering, broadens our technical capabilities, and represents an exciting next step in our efforts to expand our reach out of the car even further. Through targeted investments, we see significant opportunities to drive innovation that will accelerate growth beyond what would be available to the separate companies, and does so in a way that also benefits consumers, artists, and the broader content communities.” Meyer added.
This deal is scheduled to close in the first quarter of 2019.
