2018-09-25 10:35:00 Tue ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
Sirius XM pays $3.5 billion shares to acquire the music app company Pandora. This acquisition would form the largest audio entertainment company worldwide. Building on its 15% equity stakes in Pandora, Sirius initiates a stock acquisition with an exchange ratio of 1.44 Sirius shares for each share in Pandora. In response, Sirius experiences a 7% stock price dip while Pandora share price trades at a hefty 13% premium.
This deal generates several synergies between Sirius XM and Pandora. First, the broader music network includes 100 million active users. Sirius now has 35 million subscribers in North America and 23 million users on an annual trial. Meanwhile, Pandora keeps 70 million active users and 6 million premium subscribers. Massive network effects can result from this merger.
Second, Sirius taps into Pandora's mobile and web advertisements, and Pandora benefits from Sirius's greater financial capital and in-car presence. As the company cross-sells its music services to build new audio packages, Sirius can operate both brands for better user experience.
Third, the Pandora-Sirius combination better holds up against intense competition from Apple, Spotify, and Amazon as the latter major platform orchestrators invest aggressively in their music services. Subject to customary shareholder approval and regulatory scrutiny, the Pandora-Sirius deal can close in early-2019.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2022-10-25 11:31:00 Tuesday ET
Corporate investment insights from mergers and acquisitions Relative market misvaluation between the bidder and target firms drives most waves of mergers
2026-07-01 11:29:00 Wednesday ET
In recent years, higher American economic growth has been impressive both by historical standards and in comparison to the rest of the world. American excep
2023-10-07 10:24:00 Saturday ET
Thomas Philippon draws attention to greater antitrust scrutiny in light of the rise of market power and its economic ripple effects. Thomas Philippon (20
2018-08-13 12:39:00 Monday ET
White House chief economic adviser Larry Kudlow points out that the recent U.S. dollar strength shows a clear sign of investor confidence and optimism. Gree
2019-07-21 09:37:00 Sunday ET
Facebook introduces a new cryptocurrency Libra as a fresh medium of exchange for e-commerce. Libra will be available to all the 2 billion active users on Fa
2018-05-11 09:37:00 Friday ET
OPEC countries have cut the global glut of oil production in recent years while the resultant oil price has surged from $30 to $78 per barrel from 2015 to 2