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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.

sirius-pandora-merger.jpg

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:
Jim Meyer, Chief Executive Officer of SiriusXM, said, "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. We believe there are significant opportunities to create value for both companies' stockholders by combining our complementary businesses. The addition of Pandora diversifies SiriusXM's revenue streams with the U.S.'s largest ad-supported audio offering, broadens our technical capabilities, and represents an exciting next step in our efforts to expand our reach out of the car even further. 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."

Roger Lynch, Chief Executive Officer of Pandora, said, "We've made tremendous progress in our efforts to lead in digital audio. Together with SiriusXM, we're even better positioned to take advantage of the huge opportunities we see in audio entertainment, including growing our advertising business and expanding our subscription offerings. The powerful combination of SiriusXM's content, position in the car, and premium subscription products, along with the biggest audio streaming service in the U.S., will create the world's largest audio entertainment company. This transaction will deliver significant value to our stockholders and will allow them to participate in upside, given SiriusXM's strong brand, financial resources and track record delivering results."
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
 

sblemmy

macrumors regular
Oct 24, 2013
127
381
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.
 

ArtOfWarfare

macrumors G3
Nov 26, 2007
9,329
5,474
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.

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.
 

ehrens

macrumors member
Nov 4, 2013
85
59
the 651
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.
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.
 
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redneckitengineer

macrumors 6502
Oct 27, 2017
420
937
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.
 
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Xenomorph

macrumors 65816
Aug 6, 2008
1,351
660
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.
 

PJL500

macrumors 6502
Nov 27, 2011
274
171
DANG.

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

DogHouseDub

macrumors 6502
Sep 19, 2007
451
1,052
SF
DANG.

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

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.”
 

Kaibelf

Suspended
Apr 29, 2009
2,445
7,441
Silicon Valley, CA
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.”

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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