Siriusxm Adds Pandora for $3.5b
MARKING AN AGGRESSIVE move into the streaming market, Liberty Media’s Siriusxm announced its acquisition of internet radio and streaming platform Pandora in an all-stock transaction valued at approximately $3.5 billion. The Sept. 24 reveal boasted that the deal would create “the world’s largest audio-entertainment company,” with more than $7 billion in projected revenue in 2018 and 100 million monthly listeners, combining Siriusxm’s 36 million subscribers and Pandora’s 70 million-plus monthly active users.
Siriusxm CEO Jim Meyer noted that “Pandora’s advertising [business] is multiples bigger than Siriusxm’s.” At the same time, if any company has proven that the subscription model works, it’s Sirius, and Meyer called the deal a “win-win for both” companies. The agreement is certainly a victory for rights holders like the record labels, who will receive some $2 billion in royalties from the newly combined entity.
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