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.
2018-03-09 08:33:00 Friday ET
David Solomon succeeds Lloyd Blankfein as the new CEO of Goldman Sachs. Unlike his predecessors Lloyd Blankfein and Gary Cohn, Solomon has been an investmen
2019-11-26 11:30:00 Tuesday ET
AYA Analytica finbuzz podcast channel on YouTube November 2019 In this podcast, we discuss several topical issues as of November 2019: (1) The Trump adm
2018-09-07 07:33:00 Friday ET
The Economist re-evaluates the realistic scenario that the world has learned few lessons of the global financial crisis from 2008 to 2009 over the past deca
2018-06-08 13:35:00 Friday ET
The Federal Reserve delivers a second interest rate hike to 1.75%-2% and then expects subsequent rate increases in September and December 2018 to dampen inf
2018-09-13 19:38:00 Thursday ET
Bill Gates shares with Mark Zuckerberg his prior personal experiences of testifying on behalf of Microsoft before U.S. Congress. Both drop out of Harvard to
2019-05-07 09:30:00 Tuesday ET
The Trump team receives a 3.2% first-quarter GDP boost as Fed Chair Jay Powell halts the next interest rate hike in early-May 2019. This smooth upward econo