Sirius to Acquire Pandora in $3.5 Billion Online Radio Deal

Pandora acquired by SiriusXM in $3.5bn deal

The all-stock deal values Pandora at around $3.5 billion, creating the "world's largest audio entertainment company", with a combined revenue of over $7 billion projected for 2018.

Pursuant to the agreement, the owners of the outstanding shares in PANDORA that SIRIUSXM does not now own will receive a fixed exchange ratio of 1.44 newly issued SIRIUSXM shares for each share of PANDORA they hold.

Sirius, which markets itself as Sirius XM, agreed to deliver stock now worth about $3.5 billion to fully acquire Pandora.

Following the completion of the transaction, there will be no immediate change in listener offerings, according to both companies.

But SiriusXM says "unique audio packages" are also in the pipeline, somehow combining the parent company's "exclusive content and programming" with the daughter's ad-supported and subscription tiers to, well, milk more money from more users. Cross-promotion for artists is also on the docket.


Pandora shares rose 9.5 percent to $9.95 in early USA trading.

Both companies' boards have approved the transaction, which is expected to close in 2019's first quarter.

During a call with investors this morning, Jim Meyer, chief executive at SiriusXM, said many potential new listeners try out the satellite radio service when they get a new or used vehicle, but often do not become paying subscribers. With this, Pandora "may actively solicit, receive, evaluate and potentially enter negotiations with parties that offer alternative proposals following the execution date of the definitive agreement". It still needs approval from Pandora shareholders.

Shares in Pandora, which has posted losses for at least the past eight quarters, initially soared 18.4 percent to $10.75 in premarket trading, topping an offer value of $10.05 based on Sirius' Friday closing price. As it turns out, the next step in this strategy is a corporate acquisition, made official earlier today by SiriusXM.

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