“Recent news reports that Sirius XM Holdings may have some interest in acquiring the streaming ad and subscription supported music service Pandora Media (which also has a ticketing service) have sent that company’s equity to over $13,” Robert G. Routh, FBN Securities, writes via Barron’s. “Pandora also has a few activist investors that reportedly have been putting pressure on the Board and management to consider a sale of the company.”

“As far as Sirius or Liberty Sirius Holdings… buying the company, we think although possible we are not sure both agree buying Pandora makes sense,” Routh writes. “Thus we don’t think either is dying to buy the streaming music operator and in reality think Sirius isn’t nearly as convinced as maybe Liberty that buying Pandora makes much sense.”

“What we really see as the best option would be for Apple to buy Sirius, Liberty Sirius and Pandora in one fell swoop,” Routh writes. “Given the huge cash balance Apple has, it would be easy for them to effect any such transaction and it would not only give them multiple subscription based services they could use to augment sales of their electronic devices, but it would also give them a much larger footprint in music, a business they love and [at which they] are clearly good… We think the market would actually love any such deal due to the solid cash flow Sirius has and the visibility to said cash flow.”

Read more in the full article here.

MacDailyNews Take: Pandora is largely redundant, not to mention inferior, to what Apple already offers, but Sirius XM offers unique content that is certainly valuable, would deliver a significant amount of the recurrent subscriber (Services) revenue that Apple clearly values as it increases device stickiness while also offering another direct avenue into vehicles, Sirius XM’s preeminent market.

That said, as we wrote back in September:

We don’t see Apple ponying up the $40 billion or so it would take to buy a business that they are effectively working to replace with Apple Music and streaming content. If you’re listening to Apple Music via CarPlay, you’re not listening to Sirius XM. It would be cheaper for Apple to lure away the exclusive draws on Sirius XM (one example: Chris “Mad Dog” Russo) than to buy the whole kit and caboodle. All of Sirius XM’s music channels are already obviated by Apple Music.

Should Apple buy Sirius XM? – September 2, 2016
Why Apple should buy Sirius XM – May 13, 2013
SIRIUS and XM to combine in $13 billion merger – February 19, 2007