SiriusXM Holdings Inc. and Pandora Media, Inc. on Monday announced a definitive agreement under which SiriusXM will acquire Pandora in an all-stock transaction valued at approximately $3.5 billion.
The combination creates the world’s largest audio entertainment company, with more than $7 billion in expected pro-forma revenue in 2018, said Pandora. This strategic transaction builds on SiriusXM’s strength in subscription radio, and as a curator of exclusive audio programming, with the addition of the largest U.S. audio streaming platform.
“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,” said Jim Meyer, Chief Executive Officer of SiriusXM.
The transaction is expected to close in the first quarter of 2019. Following the completion of the transaction, there will be no immediate change in listener offerings, according to a statement by Pandora.