SiriusXM announced on 24 September that it has bought Pandora Media for US$3.5bn in an all-stock transaction
With an expected combined 2018 revenue of $7bn, this deal has created the largest audio entertainment company in the world, according to SiriusXM’s press release.
The press release states that the strategic transaction expands “SiriusXM’s position as the leader in subscription radio” by adding the largest audio streaming platform in the US to its portfolio.
Jim Meyer, CEO of SiriusXM, said:
“We believe there are significant opportunities to create value for both companies’ stockholders by combining our complementary businesses”.
The combined efforts of the two companies will drive long-term growth by maintaining and strengthening the Pandora brand, continuing to invest in content and innovation, exploring “expanded monetized opportunities”, and by capitalizing on their enormous combined user bases.
SiriusXM boasts 36mn subscribers along with over 23mn annual trial listeners, while Pandora has over 70mn active users on a monthly basis.
Pandora’s CEO Roger Lynch said:
“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”.
“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”.