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Pandora to be acquired by SiriusXM for $3.5bn

Pandora set to be acquired by SiriusXM

Music streaming service Pandora has agreed to be acquired by SiriusXM in a stock deal worth $3.5bn.

The deal will see the satellite radio company take over control of Pandora during the first quarter of 2019 to aid its battle in competing with Spotify, Apple Music and Google Play Music to reach ears.

Sirius XM chief executive Jim Meyer commented: "We have long respected Pandora and the team for its popular consumer offering that has attracted a massive audience, and have been impressed by Pandora's strategic progress and stronger execution.

"We believe there are significant opportunities to create value for both companies' stockholders by combining our complementary businesses. The addition of Pandora diversifies SiriusXM's revenue streams with the US'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."

Last year, SiriusXM invested $480m in Pandora.

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