Home
Internet
Internet News
SiriusXM to Buy Pandora in $3.5 Billion Stock Deal

SiriusXM to Buy Pandora in $3.5 Billion Stock Deal

By Reuters | Updated: 24 September 2018 18:14 IST

Photo Credit: Facebook/ Pandora

Highlights

Pandora's shares rose 18.4 percent to $10.75 in premarket trading
SiriusXM currently owns convertible preferred stock in Pandora
The transaction is expected to close in the first quarter of 2019

Satellite radio company Sirius XM Holdings said on Monday it would buy music-streaming service provider Pandora Media in an all-stock deal valued at about $3.5 billion (roughly Rs. 25,000 crores).

Pandora shareholders will receive a fixed-exchange ratio of 1.44 newly-issued SiriusXM shares for each share they hold.

The implied price of Pandora common stock is $10.14 per share, the companies said, representing a premium of 11.55 percent to stock's Friday close.

Pandora's shares rose 18.4 percent to $10.75 (roughly Rs. 127) in premarket trading.

SiriusXM currently owns convertible preferred stock in Pandora that represents a stake of about 15 percent on an as-converted basis, the companies said.

The transaction is expected to close in the first quarter of 2019.

Pandora has faced brutal competition from bigger rivals Spotify, Apple Music, and Google's Play Music, and has been launching new features to woo more subscribers as part of a turnaround aimed at achieving profitability.

Allen & Co LLC and BofA Merrill Lynch are financial advisers to SiriusXM and Baker Botts LLP and Simpson Thacher & Bartlett LLP are providing legal counsel.

Centerview Partners LLC, LionTree Advisors LLC and Morgan Stanley & Co LLC are financial advisers to Pandora and Sidley Austin LLP is the legal counsel.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Pandora

How Assassin's Creed Odyssey's Gameplay Is Influenced by Prince of Persia for the Nintendo Wii

SiriusXM to Buy Pandora in $3.5 Billion Stock Deal

Related Stories