SiriusXM to Acquire Pandora for $3.5 Billion

Discussion in 'iOS Blog Discussion' started by MacRumors, Sep 24, 2018.

  1. MacRumors macrumors bot

    MacRumors

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    SiriusXM today announced that it will acquire Pandora for $3.5 billion in an all-stock transaction, creating "the world's largest audio entertainment company," according to Pandora's press release on the news. The transaction has been unanimously approved by both the independent directors of Pandora and by the board of directors of SiriusXM, and is now expected to close in Q1 2019.

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    The companies explain that through the acquisition SiriusXM will use Pandora's platform to "significantly expand" its presence beyond vehicles, and into the user's home and smartphone devices. Still, it's promised that there will be no immediate change in listener offerings after the acquisition is completed.

    Both CEOs of SiriusXM and Pandora commented on the announcement:
    Likewise, Pandora is expected to get a boost to in-car audio using SiriusXM's relationships with the automotive industry. The companies are planning to release audio packages that combine the two services' offerings, including SiriusXM's radio stations and Pandora's ad-supported and new subscription tiers.

    Specifically, SiriusXM ensures that it will "support and strengthen" Pandora's brand, and further enhance its existing Pandora Premium on-demand music streaming service. Pandora Premium will get new promotional campaigns for emerging and established artists, which will be personalized and targeted at relevant users based on their listening habits.

    Pandora Premium was announced in late 2016 and then launched in the spring of 2017, allowing Pandora users to listen to music on-demand for the first time at a price of $9.99 per month. Similar to Apple Music and Spotify, Pandora Premium subscribers can create playlists, like/dislike tracks, browse personalized new music suggestions, and more.

    Article Link: SiriusXM to Acquire Pandora for $3.5 Billion
     
  2. sundog925 macrumors 6502a

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    #2
    DANG.

    didn't know people still used pandora (spotify is far superior)
    or that Sirius had that much money lol!
     
  3. sblemmy macrumors regular

    sblemmy

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    #3
    I'm actually surprised a merger like this took so long! I had secretly hoped Apple would have acquired SiriusXM, but a Pandora makes a lot of sense, since the two businesses act as compliments rather than competitors.
     
  4. TVGenius macrumors member

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    #4
    Look forward to them ruining Pandora the same way the previous merger ruined XM and took it from a company with a passion for quality programming to just another collection of robo-shuffled playlists with terrible audio quality.
     
  5. ArtOfWarfare macrumors G3

    ArtOfWarfare

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    #5
    Doesn't SiriusXM have a lot of hardware baggage? Owning the hardware can be good, if it's designed to be flexible, but I don't think it is in the case of SiriusXM. Pandora or Spotify seem a lot better - they're accomplishing the same thing with just software on a huge variety of platforms.

    ===

    I was surprised to realize Pandora still has the most users of any streaming service. They have 71M users, of which fewer than 10% are paying, versus Spotify's 50M of which 40% are paying.
     
  6. BJB Productions macrumors 65816

    BJB Productions

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    #6
    I still choose Pandora over Spotify when I just want to play a station. I’ve always felt like their algorithms play me better variety than Spotify. Usually when using my Sonos.
     
  7. cmwade77 macrumors 65816

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    #7
    Well the price of Pandora will skyrocket and you will have to renegotiate the price every 6 months for it to be reasonable.
     
  8. cfurlin macrumors 6502

    cfurlin

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    #8
    Yes, they still do. I can’t stand Spotify. I use Pandora.
     
  9. ehrens macrumors member

    ehrens

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    #9
    A hundred times this.

    XM was a model case for how subscription radio should have worked in the pre-smartphone era, with hand curated channels that were different from the tight formats from Clear Channel and its ilk. Once Sirius swallowed them up, the originality disappeared and all the focus was diverted to Stern and the NFL. I can't wait to see how Pandora is gutted.
     
  10. Ivan0310 macrumors member

    Ivan0310

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    #10
    Welp--time to delete my Pandora account before I start getting hounded by SiriusXM to subscribe to their awful service.
     
  11. blacktape242 macrumors 68000

    blacktape242

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    #11
    that sucks. no wonder, its going away from entune in nov. on my toyota.
     
  12. now i see it macrumors 68040

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    #12
    Time for Apple to launch satellites. Where will this end?
     
  13. redneckitengineer macrumors 6502

    redneckitengineer

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    #13
    Well after TMobile just gave me a free year of Pandora.... this is not good. I have no interest in Sirius, they’re a terrible company.
     
  14. Kaibelf macrumors 68020

    Kaibelf

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    #14
    As they say, you get what you pay for!
     
  15. maflynn Moderator

    maflynn

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    #15
    Pandora has been struggling, and Sirius needs to improve its streaming, so its a win-win
     
  16. radio893fm macrumors regular

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    #16
    Well, after 500 letters and emails trying to make me re-subscribe, now they are chasing me here as well... nope, time to close Pandora and move to another country.
     
  17. Xenomorph macrumors 65816

    Xenomorph

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    #17
    I'm not a huge fan of SiriusXM.

    The service is overpriced ($25/month) for what they provide (no skips or custom stations in your car). They advertise "$19.99" or "$14.99" or whatever, but then they have a $5 royalty fee tacked on (shouldn't that be part of the base price?), and then another $5 in taxes or whatever.


    However, the people running Sirius seem to know what they are doing. The got Stern, they got XM, they acquired the "Automatic" service, and now they are acquiring Pandora.


    This merger puts their subscription numbers well over 100 million.
     
  18. PJL500 macrumors 6502

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    #18
    Your comment is understandable. Spotify is a lance when it comes to user experience. Pandora is amazing too if you give it a chance. It has been very good for my taste in music which veers well away from Top-40. I had little faith in it in the beginning but it's radio "stations" are spot on for me after a little thumbs up/down teaching. I wanted it to fail. But I cannot do without it. 'Never took Sirius seriously!
     
  19. macduke macrumors G4

    macduke

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    #19
    As history has shown, when one old tech service buys another old tech service, it always turns out super well and everyone makes lots of money and customers are super happy about everything. /s
     
  20. LarryNyquil macrumors member

    LarryNyquil

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    #20
    Wait till you start getting physical mail from Pandora every 2 weeks.

    "Please activate your in-car SirusXMPandora subscription for 24.99 a month!"
     
  21. adamjackson macrumors 68000

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    #21
    Congrats to Tom Conrad if he still holds stock.
     
  22. DogHouseDub macrumors 6502

    DogHouseDub

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    #22
    Pandora was a legit platform for artists to promote their music on their own terms. The only music available had the active consent of the artist, and the users couldn’t just queue up a specific song - providing some motivation to make a purchase. Spotify and the like used shady third party deals that enabled them to use an artist's intellectual property without their explicit consent, and without reasonable compensation. Unfortunately, now society thinks this is ok. As with most things, “if it’s cheaper for me, f$&/ everybody else.”
     
  23. oneMadRssn macrumors 601

    oneMadRssn

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    #23
    I have SiriusXM in my car because I just want music without having to pick songs or playlists and without commercials. But dam that company sucks - terrible customer service.
     
  24. thisisnotmyname macrumors 68000

    thisisnotmyname

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    I'm shocked Pandora still has any value let along multiple billions.
     
  25. Kaibelf macrumors 68020

    Kaibelf

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    #25
    Your post is not honest. Those same artists legally gave those third parties authority to negotiate on their behalf, and they agreed to certain rates so stop pretending like Stevie Nicks is out on the corner selling matches. Most things in life do not require you to explicitly and personally consent every time you do something and the idea that everyone should have to is absurd.
     

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39 September 24, 2018