Sirius XM Holdings has agreed to acquire Pandora for $3.5 billion in an all-stock transaction. The announcement was made this morning and it will create the world’s largest audio-entertainment company.
“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,” Sirius XM CEO Jim Meyer said in the release.
“We believe there are significant opportunities to create value for both companies’ stockholders by combining our complementary businesses. The addition of Pandora diversifies Sirius XM’s revenue streams with the U.S.’s largest ad-supported audio offering, broadens our technical capabilities, and represents an exciting next step in our efforts to expand our reach out of the car even further.”
Pandora shares are up more than 9% on the news, trading just below $10. Meanwhile, Sirius XM’s stock is down about 2% at $6.84 a share.