Announced today, SiriusXM has agreed to acquire Pandora in an all-stock deal, valued at $3.5 billion.
As of now, nothing for either company changes and Pandora will go on and be the same Pandora you know and love. Same goes for SiriusXM. However, the companies did provide an overview of how they’ll use each other for future growth, which we’ll list below.
Long-term Growth Initiatives
- 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.
- Supporting and strengthening Pandora’s highly relevant brand.
- Creating a promotional platform for emerging and established artists, curated and personalized in ways to deliver the most compelling audio experience that connects artists to their fan bases, as well as new listeners.
The deal is expected to close Q1 of 2019.