Sirius XM Holdings Completes Purchase Of Pandora Media
Sirius XM Holdings (SIRI) on Friday completed its purchase of Pandora Media, creating what it called “the world’s largest audio entertainment company.”
The deal combines Sirius XM’s subscription-based national radio service of curated and exclusive content with Pandora’s advertiser-supported and subscription streaming music services.
Sirius XM announced its all-stock purchase of Pandora in September. At the time, the deal was valued at $ 3.5 billion. Pandora shareholders received 1.44 newly issued Sirius XM shares for each Pandora share they owned.
Sirius XM stock climbed 2.6% to 5.98 on the stock market today.
‘Powerful Platform’ For Listeners, Artists, Advertisers
“This is a tremendous outcome for two organizations with complementary platforms and large audiences, and we could not be more excited to be moving forward as one company,” Sirius XM Chief Executive Jim Meyer said in a news release.
He added, “Sirius XM now reaches more than 100 million people across its audio products. That is a powerful platform for consumers, content creators and advertisers.”
The combined company has nearly 40 million paying subscribers and 75 million trial users and ad-based listeners, he said. The New York City-based firm has no plans to change the existing service offerings.
Sirius XM and Pandora are two of the oldest players in the digital music space. In recent years, they have faced growing competition from subscription music-on-demand services from Spotify (SPOT), Apple (AAPL), Amazon.com (AMZN) and others.
On Tuesday, Apple announced that its Apple Music streaming service now has more than 50 million paying subscribers. Rival Spotify had 87 million paying subscribers as of Sept. 30 and will release December-quarter results on Wednesday.
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