The deal goes on

Now Sirius is trying for Pandora stake

Merger talks between Pandora’s activist backers and SiriusXM, which broke down earlier this week over price, morphed on Thursday into the satellite radio company looking to make a direct investment in the struggling streamer, The Post has learned.

The news that a takeover of Pandora, certainly at a premium, was not in the cards sent shares of the streaming radio company down 6 cents on Thursday, to $8.42.

Pandora shares had fallen 14 percent over two days earlier this week as hope for a sale faded.

SiriusXM is now negotiating a so-called Pipe deal — a private investment in public equity — with Pandora’s owners, Reuters confirmed Thursday.

SiriusXM had been offering activist shareholders a below-market rate of around $9 per share earlier in the week, sources said,.

But Pandora’s major shareholders — including hedge funds Corvex and Matrix — were looking for a price closer to around $11 or $12, sources said.

As the two sides grew no closer, it became clear that SiriusXM, backed by John Malone’s Liberty Media, could change tacks and make an investment instead.

Verizon was also considering making a direct investment in the Tim Westergren-led streamer, sources said.

The talks with SiriusXM are delaying an investment by KKR in Pandora.

The deadline on the KKR investment, scheduled to close as soon as Thursday, was extended 30 days, Pandora said in a statement.

KKR said if Pandora didn’t sell itself to an outside player, it would make an investment that could total $250 million. The private equity firm could convert the shares at $13.50.

Meanwhile, Morgan Stanley said it is concerned that lower auto sales forecasts could affect SiriusXM.

The bank’s auto team cut its auto sales forecast for 2017, and Morgan Stanley downgraded SiriusXM shares to underweight as its revenue is so dependent on new car sales.