SiriusXM Plans To Buy Pandora For $3.5 Billion
Let's see if Pandora can be revived.
Mon Sep 24 2018 09:00:00 GMT+0000 (Coordinated Universal Time)
Barring any setbacks, SiriusXM will be acquiring Pandora for $3.5 billion in stocks -- a deal creating the world's largest audio entertainment company.
Even after the acquisition is finalized both companies will continue to operate independently. More than anything, this acquisition allows for cross-promotion. SiriusXM can benefit from Pandora's "mobile strength, digital presence, and ad capabilities," while Pandora can benefit from SiriusXM's "scale, industry expertise, and financial resources," as stated in Pandora's press release on the acquisition.
To say Pandora has been struggling with converting free listeners to premium would be an understatement. Just last quarter Pandora lost $92 million. Of their 70 million monthly listeners, only around 6 million have a paid subscription. Yikes. For perspective, Spotify has around 83 million paid subscribers.
Combined, this acquisition could give the companies access to over 100 million listeners, and will be the only audio company with a strong presence in your car, phone, and home.