SiriusXM has purchased Pandora and all of its stock in a deal that is valued at $3.5 billion. Variety reports both companies announced the sale Monday morning. The acquisition of Pandora by Sirius will make the company the world’s largest audio entertainment company. They are projected to bring in more than $7 billion in revenue this year.
June 2018 marked the initial investment in Pandora by SiriusXM after a $480 million investment that provided a 19% stake, however, they did not have the clearance to take over the company without permission from the board of directors at Pandora. That has now changed as the board of directors at SiriusXM and Pandora have agreed.
“We have long respected Pandora and their team for their popular consumer offering that has attracted a massive audience, and have been impressed by Pandora’s strategic progress and stronger execution,” said Jim Meyer, Chief Executive Officer of SiriusXM. We believe there are significant opportunities to create value for both companies’ stockholders by combining our complementary businesses.”
The move will allow the company to do cross-promotion across each side’s subscribers, creating exclusive content, creating a platform for artists and more.