SiriusXM Completes Pandora Acquisition
SiriusXM Holdings Inc. has completed the acquisition of Pandora Media, Inc., which was announced in September.
With a combined audience of more than 100 million listeners in North America across both companies’ audio products, the newly created entity has become the “world’s largest audio entertainment company”, according to today’s announcement.
Of those 100 million-plus listeners, 40 million are paying subscribers and 75 million are either ad-based listeners or currently in the trial phase.
This represents the “largest digital audio entertainment audience in the U.S.”, according to the announcement.
Apple Music and Spotify both have around 20 million paying subscribers in the U.S., according to the most recent numbers released by both companies.
SiriusXM CEO Jim Meyer said: “This is a tremendous outcome for two organizations with complementary platforms and large audiences, and we could not be more excited to be moving forward as one company.
“With SiriusXM’s subscription-based national service of curated and exclusive content and programming, and Pandora, the largest U.S. streaming music provider with its highly personalized free ad-supported service, under one roof, SiriusXM now reaches more than 100 million people across its audio products.
“That is a powerful platform for consumers, content creators and advertisers.”
Meyer added: “Importantly, the premier products that SiriusXM and Pandora listeners have enjoyed for years are not changing. That said, good things come from being together, and we look forward to creating new unique audio packages that combine our strengths and offer an even wider range of content to our listeners.
‘On behalf of everyone at SiriusXM, we are excited to officially welcome the talented Pandora team and look forward to working with all of our employees to continue delivering the best audio entertainment experience in the world and creating enhanced value for stockholders.”
Ways of creating enhanced value include:
– Capitalizing on cross-promotion opportunities across the combined company’s listenership in North America
– Pairing SiriusXM’s curation and exclusive programming with Pandora’s predictive listener personalization technology to deliver tailored audio experiences
– Creating new audio packages that bring together the best of both services
– Providing a platform for consumers to connect with established and emerging artists, entertainment brands, and talent
– Expanding monetization opportunities through both ad-supported and subscription services – in and out of the vehicle
The outstanding shares in Pandora not already owned by SiriusXM will be exchanged for a fixed ratio of 1.44 newly issued SiriusXM shares. Shares of Pandora’s common stock are no longer trading on the New York Stock Exchange.