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

Peter Thiel shares his money views of President Trump, Facebook, Bitcoin, global finance, and trade.

Apple Boston

2018-03-05 07:34:00 Monday ET

Peter Thiel shares his money views of President Trump, Facebook, Bitcoin, global finance, and trade.

Peter Thiel shares his money views of President Trump, Facebook, Bitcoin, global finance, and trade etc. As an early technology adopter, Thiel invests in Fa

+See More

Today, tech titans continue to reshape and even disrupt global pharmaceutical investments for both better healthspan and longer lifespan.

John Fourier

2026-10-31 12:38:00 Saturday ET

Today, tech titans continue to reshape and even disrupt global pharmaceutical investments for both better healthspan and longer lifespan.

Today tech titans and billionaires continue to reshape global pharmaceutical investments for both better healthspan and longer lifespan. We discuss, desc

+See More

International trade, immigration, and elite-mass conflict

Jacob Miramar

2023-12-09 08:28:00 Saturday ET

International trade, immigration, and elite-mass conflict

International trade, immigration, and elite-mass conflict The elite model portrays public policy as a reflection of the interests and values of elites. I

+See More

With majority control, House Democrats pass 2 bills to reopen the U.S. government without funding the Trump border wall.

John Fourier

2019-01-12 10:33:00 Saturday ET

With majority control, House Democrats pass 2 bills to reopen the U.S. government without funding the Trump border wall.

With majority control, House Democrats pass 2 bills to reopen the U.S. government without funding the Trump border wall. President Trump makes a surprise Wh

+See More

Apple unveils 3 iPhone 11 models with new original video services and stars such as Oprah Winfrey, Jennifer Aniston, and Reese Witherspoon.

Joseph Corr

2019-10-13 16:22:00 Sunday ET

Apple unveils 3 iPhone 11 models with new original video services and stars such as Oprah Winfrey, Jennifer Aniston, and Reese Witherspoon.

Apple unveils 3 iPhone 11 models with new original video services and stars such as Oprah Winfrey, Jennifer Aniston, and Reese Witherspoon. Apple releases t

+See More

Macro economic innovations and asset alphas show significant mutual causation.

Olivia London

2023-12-03 11:33:00 Sunday ET

Macro economic innovations and asset alphas show significant mutual causation.

Macro innovations and asset alphas show significant mutual causation. April 2023   This brief article draws from the recent research publicati

+See More