Sirius XM is buying Pandora Radio for $3.5 billion in stock
Pandora Radio and Sirius XM Holdings will now be the world's largest audio entertainment company
The satellite radio company Sirius XM is purchasing Pandora Radio for $3.5 billion in an all-stock transaction. The company, which had already owned 15% of the internet radio service says that will continue to maintain both brands and services. With the acquisition, Sirius and Pandora will now be the world’s largest audio-entertainment company.
Those currently investing in Pandora will be happy to hear that they will receive 1.44 newly-issued Sirius XM shares for every share of Pandora they own. Sirius XM CEO said in a press release posted early Monday that they “believe there are significant opportunities to create value for both companies' stockholders by combining our complementary businesses. The addition of Pandora diversifies Sirius XM'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."
Pandora stock is currently up 9%, trading just below $10 while Sirius XM is down roughly 2.3%. We’re interested to see what will come of the acquisition and how the two will plan to compete with streaming services like Spotify and Apple Music. Let us know what you think about the purchase in the comments section below and be sure to subscribe to The Sitch for more online radio news and other entertaining reads