Home INDUSTRY NEWS SiriusXM Leaps Into Streaming With $3.5 Billion Acquisition of Pandora

SiriusXM Leaps Into Streaming With $3.5 Billion Acquisition of Pandora

38

In a $3.5 billion announced Monday, SiriusXM will acquire Pandora in an all-stock transaction.

The transaction is expected to close in the first quarter of 2019 and will be subject to the approval of Pandora stockholders; customary closing conditions; and the expiration of any applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act and of competition laws of foreign jurisdictions. The deal will create the world’s largest audio-entertainment company with more than $7 billion combined in projected revenue for 2018.

This deal marks a major committment by SiriusXM and Liberty Media, its parent company, to enter the streaming market, and is the last and largest commitment to the endeavor by SiriusXM. After months of cautious consideration, SiriusXM committed to investing $480 million in Pandora, giving the satellite radio company a 19% stake in Pandora. The deal stipulated that SiriusXM could not acquire more than 31.5% of Pandora without board approval. SiriusXM’s newly announced acquisiton has been approved by both the independent directors of Pandora and by SiriusXM’s board of directors.

According to Monday’s announcement:

“This strategic transaction builds on SiriusXM’s position as the leader in subscription radio and a critically acclaimed curator of exclusive audio programming with the addition of the largest U.S. audio streaming platform… Pandora’s powerful music platform will enable SiriusXM to significantly expand its presence beyond vehicles into the home and other mobile areas. Following the completion of the transaction, there will be no immediate change in listener offerings.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.