Pandora Finds New Owner

SiriusXM has announced the purchase of Pandora for a value of 3.5 billion dollars. The operation will be carried out by means of a stock transaction, creating "the world's largest audio entertainment company, " according to the press release released by Pandora. The transaction has been unanimously approved by the boards of directors of both companies, and is expected to be consumed during the first quarter of 2019.

SiriusXM acquires Pandora to "expand" its presence beyond vehicles

The companies have explained that, through the acquisition, SiriusXM will use the Pandora platform to "significantly expand" its presence beyond vehicles, home devices and users' smartphones. Still, it has been confirmed that there will be no immediate changes to the offers available to Pandora users once the acquisition is complete. The two CEOs of SiriusXM and Pandora have spoken about the announcement.

Jim Meyes, CEO of SiriusXM, has said:

“We have long respected Pandora and its team for their popular offering to consumers that has attracted a massive audience, and have been impressed by Pandora's strategic progress and stronger execution. We believe there are significant opportunities to create value for the shareholders of both companies by combining our complementary businesses. The addition of Pandora diversifies SiriusXM's revenue streams with the largest advertising-backed audio offering in the US. Expands our technical capabilities and represents an exciting next step in our efforts to expand our reach. In addition, through targeted investments, we see significant opportunities to drive innovation that will accelerate growth beyond what would be available to separate companies. And it does so in a way that also benefits consumers, artists and broader content communities. Together, we will deliver even more of the best content on the radio to our passionate and loyal listeners and attract new listeners through our two platforms. ”

For his part, Roger Lynch, executive director of Pandora, has stated:

“We have made tremendous progress in our efforts to lead in digital audio. Together with SiriusXM, we are even better positioned to take advantage of the tremendous opportunities we see in audio entertainment, including the growth of our advertising business and the expansion of our subscription offerings. SiriusXM's powerful combination of content, in-car position and premium subscription products, along with the largest audio streaming service in the United States, will create the world's largest audio entertainment company. It will deliver significant value to our shareholders and enable them to participate on the upside, given SiriusXM's strong brand, financial resources and track record of delivery results. ”

The companies plan to launch audio packages that combine the offerings of the two services, including SiriusXM radio stations and Pandora's new ad-supported subscription levels.

Pandora Premium was announced in late 2016 and then launched in spring 2017 with a price of $ 9.99 a month. Like Apple Music and Spotify, Pandora Premium subscribers can create playlists, select the music they like, and receive personalized suggestions.