By Bloomberg
September 24, 2018

Sirius XM Holdings Inc. said it will acquire Pandora Media Inc. in a $3.5 billion deal, helping the satellite-radio company expand into online music.

The all-stock transaction values Pandora at $10.14 a share, about 12 percent more than the company’s closing price on Friday. Sirius already has a 15 percent stake in Oakland, California-based Pandora, the companies said in a statement Monday.

The combination will help Sirius expand beyond an audience that largely listens to the satellite radio company’s programs while driving. Sirius acquired a stake in Pandora last year for $480 million, giving the online-radio company a lifeline after upstarts such as Spotify Technology SA began luring away streaming-music subscribers. Pandora has introduced its own on-demand music service and brought in former Sling TV Chief Executive Officer Roger Lynch a year ago to work on a turnaround.

Pandora shares rose 9.5 percent to $9.95 in early U.S. trading. That’s below their 2018 highest price of $9.97 earlier this month. SiriusXM was up 1.3 percent to $6.89.

The companies said the transaction is expected to be completed in the first quarter of next year.

Contact us at editors@time.com.

SPONSORED FINANCIAL CONTENT

You May Like

EDIT POST