Sirius XM Holdings will acquire Pandora for $3.5 billion in an all-stock transaction, creating the world’s largest audio-entertainment company, the two sides announced Monday.
The deal, which includes a “go-shop” provision, will pay current Pandora shareholders 1.44 newly-issued shares SiriusXM shares for every share they own. The implied price of $10.14 a share is a 13.8% premium to Pandora’s 30-day volume-weighted average price.
“We have long respected Pandora and their team for their popular consumer offering that has attracted a massive audience, and have been impressed by Pandora’s strategic progress and stronger execution,” Sirius XM CEO jim Meyer said in the release.
“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 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.”
Alongside the announcement, SiriusXM reiterated its full-year 2018 outlook and Pandora reiterated its third-quarter outlook.
This story is developing…