Sirius to acquire Pandora in $3.5-b online radio deal
Bengaluru: 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.
Sirius XM, controlled by media mogul John Malone’s Liberty Media, has built a name supplying more than 175 channels to car drivers, but has largely trailed Pandora and Spotify Technology 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% preferred-stock stake in Pandora for $480 million last year.
Shares in Pandora, which has posted losses for at least the past eight quarters, initially soared 18.4% to $10.75 in premarket trading, topping an offer value of $10.05 based on Sirius’ Friday closing price.
Sirius XM, controlled by media mogul John Malone’s Liberty Media, has built a name supplying more than 175 channels to car drivers, but has largely trailed Pandora and Spotify Technology 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% preferred-stock stake in Pandora for $480 million last year.
Shares in Pandora, which has posted losses for at least the past eight quarters, initially soared 18.4% to $10.75 in premarket trading, topping an offer value of $10.05 based on Sirius’ Friday closing price.