SiriusXM to Acquire Pandora for $3.5 Billion

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

  1. MacRumors macrumors bot


    Apr 12, 2001

    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.


    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

    Dec 19, 2011

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


    Oct 24, 2013
    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

    Aug 26, 2003
    Yuma, AZ
    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


    Nov 26, 2007
    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

    Nov 10, 2008
    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

    Nov 18, 2008
    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


    Jun 14, 2011
    Yes, they still do. I can’t stand Spotify. I use Pandora.
  9. ehrens macrumors member


    Nov 4, 2013
    the 651
    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


    Mar 1, 2011
    Dallas, TX
    Welp--time to delete my Pandora account before I start getting hounded by SiriusXM to subscribe to their awful service.
  11. blacktape242 macrumors 68000


    Dec 17, 2010
    Sacramento, CA
    that sucks. no wonder, its going away from entune in nov. on my toyota.
  12. now i see it macrumors 68040

    Jan 2, 2002
    Time for Apple to launch satellites. Where will this end?
  13. redneckitengineer macrumors 6502


    Oct 27, 2017
    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


    Apr 29, 2009
    Silicon Valley, CA
    As they say, you get what you pay for!
  15. maflynn Moderator


    Staff Member

    May 3, 2009
    Pandora has been struggling, and Sirius needs to improve its streaming, so its a win-win
  16. radio893fm macrumors regular

    Aug 11, 2004
    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


    Aug 6, 2008
    St. Louis
    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

    Nov 27, 2011
    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


    Jun 27, 2007
    Central U.S.
    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


    Sep 7, 2017
    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

    Jul 9, 2008
    Congrats to Tom Conrad if he still holds stock.
  22. DogHouseDub macrumors 6502


    Sep 19, 2007
    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


    Sep 8, 2011
    New England
    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


    Oct 22, 2014
    known but velocity indeterminate
    I'm shocked Pandora still has any value let along multiple billions.
  25. Kaibelf macrumors 68020


    Apr 29, 2009
    Silicon Valley, CA
    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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