A strategic investment between satellite radio company SiriusXM and personalized streaming audio company Pandora has been finalized.
According to a press release, under the terms of the agreement, a subsidiary of SiriusXM purchased $172.5m of Series A preferred stock upon execution of the agreement on June 9 and today purchased an additional $307.5m of the Series A preferred stock at a purchase price of $10.50 per share.
Upon the closing, Gregory B. Maffei, chairman of SiriusXM, James E. Meyer, chief executive officer of SiriusXM, and David J. Frear, senior executive vice president and chief financial officer of SiriusXM, were named to the Pandora Board of Directors. Maffei was also named chairman of Pandora. With these additions, Elizabeth Nelson concluded her tenure on Pandora's board, effective immediately. She has served on Pandora's board since 2013.
SiriusXM may require Pandora to redeem the Series A preferred stock beginning on September 22, 2022, the fifth anniversary of the closing, for an amount equal to its liquidation preference plus all accrued and unpaid dividends.
Pandora has made some strategic moves as of late, including using conversion measurement tool Attribution by Foursquare to help its advertisers better understand how their digital ads are driving foot traffic to brick-and-mortar locations, and partnering with A Million Ads to bring dynamic capabilities popular in display and video advertising to the audio marketplace.