Sirius XM plans to acquire music streaming service Pandora in a $3.5 billion all-stock deal unveiled Monday.
According to CNBC:
The agreement includes a “go-shop” provision where Pandora “may actively solicit, receive, evaluate and potentially enter negotiations with parties that offer alternative proposals following the execution date of the definitive agreement.”
Acquiring Pandora would make SiriusXM the world’s largest audio entertainment company, with over $7 billion in combined revenue expected in 2018. The deal would bring together SiriusXM’s 36 million subscribers in North America and Pandora’s more than 70 million monthly active users. The satellite radio company signed a partnership with Netflix in July to create a comedy channel. That channel is slated to launch in January and will feature new material from comedians promoted in Netflix original content.
SiriusXM expects the deal to close in the first quarter of 2019.