Sirius XM pays $3.5 billion shares to acquire the music app company Pandora.

Jonah Whanau

2018-09-25 10:35:00 Tue ET

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.

Blog+More

Michael Sandel analyzes what money cannot buy in stark contrast to the free market ideology of capitalism.

Daisy Harvey

2023-06-21 12:32:00 Wednesday ET

Michael Sandel analyzes what money cannot buy in stark contrast to the free market ideology of capitalism.

Michael Sandel analyzes what money cannot buy in stark contrast to the free market ideology of capitalism. Michael Sandel (2013)   What money

+See More

These famous quotes of self-made billionaires are inspirational words of wisdom on investment management.

Joseph Corr

2017-06-27 05:40:00 Tuesday ET

These famous quotes of self-made billionaires are inspirational words of wisdom on investment management.

These famous quotes of self-made billionaires are inspirational words of wisdom on financial management, innovation, and entrepreneurship. For financial

+See More

Mark Granovetter follows the key principles of modern economic sociology to analyze social relations and economic phenomena.

Charlene Vos

2023-02-21 08:27:00 Tuesday ET

Mark Granovetter follows the key principles of modern economic sociology to analyze social relations and economic phenomena.

Mark Granovetter follows the key principles of modern economic sociology to analyze social relations and economic phenomena. Mark Granovetter (2017) &

+See More

Stock Synopsis: High-speed 5G broadband and mobile cloud telecommunication

Charlene Vos

2024-04-02 04:45:41 Tuesday ET

Stock Synopsis: High-speed 5G broadband and mobile cloud telecommunication

Stock Synopsis: High-speed 5G broadband and mobile cloud telecommunication In the U.S. telecom industry for high-speed Internet connections and mobile cl

+See More

Tim Berners-Lee suggests that several tech titans might need to be split up in response to some recent data breach and privacy concerns.

Chanel Holden

2018-11-09 11:35:00 Friday ET

Tim Berners-Lee suggests that several tech titans might need to be split up in response to some recent data breach and privacy concerns.

The Internet inventor Tim Berners-Lee suggests that several tech titans might need to be split up in response to some recent data breach and privacy concern

+See More

Trump advisor Gary Cohn aims for tax neutrality over the next decade.

Charlene Vos

2017-02-25 06:44:00 Saturday ET

Trump advisor Gary Cohn aims for tax neutrality over the next decade.

As the White House economic director, Gary Cohn suggests that the Trump administration will tackle tax cuts after the administration *repeals and replaces*

+See More