Sir­iusxm Adds Pan­dora for $3.5b

Variety - - Plugged In -

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.

For the full story, head to Va­ri­ety.com.

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