SiriusXM is purchasing the streaming service Pandora for $3.5 billion, creating what the companies say would be the largest audio entertainment company on the planet, according to CNN Money on Monday.
SiriusXM, the merger of former satellite radio rivals Sirius and XM, has been around since 2008 and has a reported 36 million North American subscribers, CNN wrote. Pandora, which was facing increased competition from Spotify, Apple, and other similar services, has more than 70 million active users, the network stated.
SiriusXM has become the home of a wide range of celebrities across numerous genres who found the satellite radio’s unfiltered home to its liking. Shock jock Howard Stern earned millions after ditching traditional radio and the Federal Communications Commission censures, the broadcaster noted.
CNN noted that Sirius already owned 19 percent of Pandora after dumping $480 million into the streaming service in 2017. The broadcaster said that Pandora’s stock, which had been down 35 percent after the departure of key personnel, had doubled since in anticipation of the sale.
But Pandora lost $221 million the first half of this year, CNN wrote.
“Together, we will deliver even more of the best content on radio to our passionate and loyal listeners, and to new listeners, across our two platforms,” SiriusXM said in a statement on its website Monday.
“SiriusXM and Pandora are continuing to provide the content, products and services you expect from us. We will continue to provide updates on our offerings through the same channels as we always have, but are happy to answer some of your questions here,” the statement continued.
The SiriusXM statement said that for now there will be no changes to any SiriusXM or Pandora subscriptions or services. It went on to add that there are no immediate plans as far as content sharing between the two but will provide updates as the merger moves forward.
“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,” Jim Meyer, chief executive officer of SiriusXM, said in a statement released by Pandora. “We believe there are significant opportunities to create value for both companies’ stockholders by combining our complementary businesses.”
Roger Lynch, chief executive officer of Pandora, said in the statement that while Pandora had made progress as an independent company, it believes that the merger would put both companies in a stronger position in the radio marketplace.
“Together with SiriusXM, we’re even better positioned to take advantage of the huge opportunities we see in audio entertainment, including growing our advertising business and expanding our subscription offerings,” Lynch added. “This transaction will deliver significant value to our stockholders and will allow them to participate in upside, given SiriusXM’s strong brand, financial resources and track record delivering results.”