SiriusXM acquires Pandora in an all-stock transaction valuing Pandora at $3.5 Bn to create the world’s largest audio entertainment company. The combined company will merge the largest US audio streaming platform with SiriusXM’s strong in-car presence and have an expected turnover of more than $7 Bn in 2018.
The combined company has a market value of about $34 Bn, topping Spotify’s $31.2 Bn and follows an initial purchase by SiriusXM of a 15% stake in Pandora for $480 million last year.
This strategic transaction builds on SiriusXM’s position as the leader in subscription radio with the addition of the largest US audio streaming platform. Pandora‘s music platform will enable SiriusXM to significantly expand its presence beyond vehicles into the home and other mobile areas. Following the completion of the transaction, there will be no immediate change in listener offerings.
The combined company will drive long-term growth by:
- Capitalizing on cross-promotion opportunities between SiriusXM’s base of more than 36 million subscribers across North America and 23 million-plus annual trial listeners and Pandora’s more than 70 million monthly active users, which represents the largest digital audio audience in the U.S.
- Leveraging SiriusXM’s exclusive content and programming with Pandora’s ad-supported and subscription tiers to create unique audio packages, while also utilizing SiriusXM’s extensive automotive relationships to drive Pandora’s in-car distribution.
- Continuing investments in content, technology, innovation, and expanded monetization opportunities through both ad-supported and subscription services in and out of the vehicle.
Jim Meyer, Chief Executive Officer of SiriusXM, said, “We have long respected Pandora and their team for their popular consumer offering 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 both companies’ stockholders by combining our complementary businesses. The addition of Pandora diversifies SiriusXM’s revenue streams with the US’s largest ad-supported audio offering, broadens our technical capabilities, and represents an exciting next step in our efforts to expand our reach out of the car even further.”
