SiriusXM will acquire internet radio and music streaming service Pandora in a $3.5 billion all-stock deal, the company announced Monday.
The combined company will have more than $7 billion in expected pro forma revenue in 2018.
Under terms of the agreement, which will create the world’s largest audio entertainment company, Pandora shareholders will receive a fixed exchange ratio of 1.44 newly issued SiriusXM shares for each share they own.SiriusXM currently owns convertible preferred stock in Pandora that represents a stake of approximately 15 percent on an as-converted basis, it said.
SiriusXM’s purchase of Pandora will allow Sirius to expand its reach beyond vehicles into homes and other mobile areas. the word order here makes it sound like "homes" are "mobile areas"
“The addition of Pandora diversifies SiriusXM’s revenue streams with the U.S.'s largest ad-supported audio offering, broadens our technical capabilities, and represents an exciting next step in our efforts to expand our reach out of the car even further,” SiriusXM CEO Jim Meyer said in a statement.
After the transaction is completed, Sirius noted that there will be no immediate change in listener offerings.