Sirius to Acquire Pandora in 35 Billion Online Radio Deal
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.