SiriusXM to acquire Pandora - Mobile World Live

SiriusXM to acquire Pandora

24 SEP 2018

Satellite radio company SiriusXM prepared an acquisition of music streaming app Pandora via an all-stock transaction which values the latter at approximately $3.5 billion, in a move the companies claim will create the world’s largest audio entertainment company.

Pandora had reportedly rejected a takeover attempt by SiriusXM in 2017, following which SiriusXM invested $480 million in the streaming company. At the time, the sum was sufficient to cover 19 per cent of Pandora’s stock and three seats on the board, including the chairmanship. However, terms of the deal prevented SiriusXM from buying more shares for 18 months, or acquiring more than 31.5 per cent of Pandora company without the board’s approval.

The acquisition will bring SiriusXM access to Pandora’s 70 million monthly users, including the 5.6 million paying ones.

“Pandora’s powerful music platform will enable SiriusXM to significantly expand its presence beyond vehicles into the home and other mobile areas,” it said in a statement.

The company added it will use its exclusive content and programming with Pandora’s ad-supported and subscription tiers to create unique audio packages, as well as use its extensive automotive relationships to drive Pandora’s in-car distribution.

Following the completion of the transaction, there will be no immediate change in listener offerings. The transaction received unanimous approval by both the independent directors of Pandora and SiriusXM’s board.

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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