(CelebrityAccess) – SiriusXM Holdings Inc. announced today (Sept. 24) that it is set to acquire streaming service Pandora Media Inc. in an all-stock deal valued at $3.5 billion.
According to a statement issued by Sirius, which already owns approximately 15% of convertible preferred Pandora stock, the satellite radio giant plans to maintain both the Sirius XM and Pandora brands and services. The statement also noted that shareholders will receive 1.44 of newly issued shares of Sirius XM for every share of Pandora they own.
SiriusXM currently has more than 36 million subscribers in North America while Pandora, which provides free and paid music streaming, has more than 70 million monthly listeners. By pooling their resources, Sirius hopes to be able to take on major digital competitors like Spotify and Apple Music who currently have a stronghold on the digital streaming market.
Commenting on the acquisition, SiriusXM CEO Jim Meyer said: “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 radio to our passionate and loyal listeners, and attract new listeners, across our two platforms.”