SiriusXM to buy Pandora

SiriusXM announced Monday morning it will acquire Pandora Media in a deal that will create the world’s largest audio entertainment company.

The all-stock deal is valued at about $3.5 billion. The two companies hope to close the deal, which must be reviewed by antitrust agencies before it can be approved.

SiriusXM’s programming includes Howard Stern’s show, while Pandora is a pioneer in online music streaming.

“We believe there are significant opportunities to create value for both companies’ stockholders by combining our complementary businesses,” Jim Meyer, SiriusXM’s CEO, said in a statement.

{mosads}He said Pandora would diversity his company’s revenue streams and broaden its technical capabilities.

Roger Lynch, who serves as Pandora CEO, called the two companies a “powerful combination” that will “deliver significant value” to its stockholders. He predicted the companies could grow their advertising and expand subscription offerings.  

“The powerful combination of SiriusXM’s content, position in the car, and premium subscription products, along with the biggest audio streaming service in the U.S., will create the world’s largest audio entertainment company,” Lynch said in a release. “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.”

Pandora has more than 70 million monthly active users, according to the announcement, and about 6 million subscribers, while SiriusXM’s has a subscriber base of more than 36 million across North America. 

A joint statement by the two companies ensured listeners “there will be no immediate change in listener offerings.”