“Satellite radio firm Sirius XM Holdings Inc will buy music streamer Pandora Media Inc in a $3.5 billion all-stock deal, as it seeks to build scale to battle heavyweight streaming rivals Spotify and Apple Music,” Reuters reports. “Sirius XM, controlled by media mogul John Malone’s Liberty Media Corp, has built a name supplying more than 175 channels to car drivers, but has largely trailed Pandora and Spotify Technology SA in mobile and streaming content.”
“Monday’s deal gives the pair a market value of about $34 billion, topping Spotify’s $31.2 billion and follows through on Sirius’ purchase of a 15 percent preferred-stock stake in Pandora for $480 million last year,” Reuters reports.
“Pandora shareholders will receive a fixed-exchange ratio of 1.44 newly-issued SiriusXM shares for each share they hold,” Reuters reports. “The transaction is expected to close in the first quarter of 2019.”
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MacDailyNews Take: Seems like a no-brainer acquisition for SiriusXM.
Simple mathematics makes it blatantly obvious what’s going to happen to Pandora. – MacDailyNews, September 24, 2013