Sirius XM Holdings (NASDAQ:SIRI) Set to Acquire Pandora Media Inc (NYSE:P)

708 0 1 1 1 1 (6)

Sirius XM Holdings Inc (NASDAQ:SIRI) and Pandora Media Inc (NYSE:P) are two music streaming services that have long been in tight competition for listeners but now they are potentially set to merge. A press release today detailed Sirius XM Holdings Inc (NASDAQ:SIRI) offer to Pandora Media Inc (NYSE:P).

Sirius XM Holdings Inc (NASDAQ:SIRI), which already owns 16% of Pandora Media Inc (NYSE:P), has agreed to pay Pandora Media Inc (NYSE:P) shareholders 1.44 newly issued SIRI shares for every P share they own, or about 10.14 USD. This is about a 14% premium over Pandora Media Inc (NYSE:P) 30-day average share price.

Enter MatriX & Create Your Own Interactive Charts

Acquisition Details

Sirius stated that they would maintain both services and there wouldn't be an immediate change in music offerings. Sirius XM Holdings Inc (NASDAQ:SIRI) CEO, Jim Meyer said in a statement, "We believe there are significant opportunities to create value for both companies' stockholders by combining our complementary businesses. The addition of Pandora diversifies Sirius XM'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."

The deal isn't set in stone quite yet however as there is a standard "go-shop" provision. This will allow Pandora Media Inc (NYSE:P) to find other potential buyers if another company were willing to outbid Sirius XM Holdings Inc (NASDAQ:SIRI).  The news lifted Pandora Media Inc (NYSE:P) shares about 4% today, while Sirius XM Holdings Inc (NASDAQ:SIRI) fell by nearly 3%.

Register now for the world's best investment ideas

If the deal is successful Sirius XM Holdings Inc (NASDAQ:SIRI) CEO, Jim Meyer, is hopeful the companies can extend their reach. "Through targeted investments, we see significant opportunities to drive innovation that will accelerate growth beyond what would be available to the separate companies and does so in a way that also benefits consumers, artists, and the broader content communities. Together, we will deliver even more of the best content on the radio to our passionate and loyal listeners, and attract new listeners, across our two platforms." 

There is stiff competition in the music streaming industry with Apple Inc. (NASDAQ:AAPL), Apple Music and privately owned Spotify. If the 3.5 billion USD merger is a success, the company would be the largest audio-entertainment company in the world.


Comments (6)

image
  • Tito
  • ,  Contributor
  • 24 September 2018, 03:09 pm

By my calculations this dilutes Siri value about 8%. We are down almost 7% right now.\n

   0   Reply (0)   Follow(437)  

    image
    • Bob Jones
    • ,  Contributor
    • 24 September 2018, 03:09 pm

    Why in the world should Siri purchase P? It reminds me of Sears purchasing K-Mart. A poor decision!\n

       0   Reply (0)   Follow(437)  

      image

      Say thank you that they didn\'t buy Spotify for 40 B.\n