Pandora’s music streaming service has now officially been acquired by SiriusXM creating a mega music entertainment company.
In September Pandora agreed to a purchase of their services in a $3.5 billion “all-stock transition” by Sirius XM Holdings. The satellite and digital radio company were waiting for approval from Europe under competition laws in Germany and Austria. Now Pandora’s streaming services have been approved to come under Sirius XM’s umbrella.
Pandora have over 70 million users on their free radio streaming platform as well as many users subscribed to their unlimited music streaming service launched 2 years ago. Having grown their platform with a radio-style streaming service offering streams of music based on artists or tracks that you choose, their services will fit nicely under the guidance of Sirius XM’s radio business. Sirius XM have 36 million North American subscribers and 23 million trial listeners giving them a massive chunk of online music listeners following their buyout of Pandora.
Following their positive report for the third quarter of 2018, Pandora’s CEO made a statement in which he said: “Looking ahead, I couldn’t be more excited about Pandora joining forces with Sirius XM. A combined Pandora-Sirius XM will create the world’s largest audio entertainment company, bringing Pandora additional resources to accelerate growth and building on Sirius XM’s leadership in the car, subscription expertise, and unique content.”
Sirius XM Holdings CEO Jim Meyer said when they first announced their buyout of Pandora: “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.
“We believe there are significant opportunities to create value for both companies’ stockholders by combining our complementary business. The addition of Pandora diversifies Sirius XM’s revenue streams with the US’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.”