SiriusXM will acquire Pandora in a $3.5 billion all-stock deal, the companies announced Monday.
The deal between SiriusXM — a satellite radio company — and Pandora Media — a music streaming company — will create the world’s largest audio entertainment company, they said in a joint release.
The companies hope to cross-promote between SiriusXM’s more than 36 million US subscribers and 23 million annual trial listeners, and Pandora’s more than 70 million monthly active users.
“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,” said Jim Meyer, SiriusXM’s CEO.
Pandora CEO Roger Lynch said the deal will better position the streaming service to “take advantage of the huge opportunities we see in audio entertainment, including growing our advertising business and expanding our subscription offerings.”
Pandora shares rose 10.3 percent to $10.03 a share in premarket trading, while Sirius stock fell 0.4 percent to $6.95 a share, CNBC reported.
The deal is expected to close early next year and is subject to approval by Pandora stockholders.
Last week, Pandora introduced a, which collects new-release music suited to your tastes, for those who pay for a . It also added the ability to in August.
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