Sirius Money For Pandora

OAKLAND, CA — Radio streaming company SiriusXM will acquire Oakland-based Pandora in a $3.5 billion buyout to push music streaming growth, Sirius officials announced today.

The all-stock acquisition is expected to bring in revenue of $7 billion and create the world's largest audio entertainment company, according to SiriusXM.

The deal includes a "go-shop" provision, which allows Pandora to solicit competing offers until the acquisition goes through.

Because the acquisition has not been completed, Pandora has not yet released any information about whether jobs or other operations will be affected.

The transaction is expected to close in the first quarter of 2019, according to SiriusXM. Investors will receive a fixed exchange ratio of 1.44 newly-issued SiriusXM shares for each Pandora share they currently own.

"Together with SiriusXM, we're even better positioned to take advantage of the huge opportunities we see in audio entertainment, including growing our advertising business and expanding our subscription offerings,"
Pandora CEO Roger Lynch said in a statement.

Kevin Erickson, director of the Future of Music Coalition, said the acquisition could pose a serious threat to musicians, who may be paid less as a result of decreased competition among streaming platforms. The nonprofit advocates for artists in policy issues like the federal Music Modernization Act being considered by Congress.

Over the last 25 years, Erickson said he has seen ownership consolidation in almost every aspect of the music industry, including broadcasting, ticketing and sales, digital platforms and music media.

"It's very difficult for us to find many examples of times when that's worked out to the advantage of musicians and the advantage of fans," he said.

According to SiriusXM, Pandora currently has more than 70 million monthly active users and SiriusXM has more than 36 million subscribers across North America.

"We want all of these companies to do well ... but we want a landscape that's characterized by businesses that better serve listeners and better service musicians," Erickson said.

— Bay City News; Image via Shutterstock

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