Leveraging SIRIUSXM's exclusive content and programming with Pandora's ad-supported and subscription tiers to create unique audio packages, while also utilizing SIRIUSXM's extensive automotive relationships to drive PANDORA's in-car distribution. There are now 36 million subscribers to SiriusXM with another 23 million will have tried out trial offers by the end of the year.
As of now, nothing for either company changes and Pandora will go on and be the same Pandora you know and love. It's not yet clear how or if the strategies of SiriusXM and Pandora will change in light of the acquisition, but Pandora CEO Roger Lynch said, "There's no shortage of ideas that [SiriusXM CEO Jim Meyer] and I have had on things we can do together, everything from the content side to things we can bundle in the vehicle".
Pandora shares rose 9.5 percent to $9.95 in early USA trading.
PANDORA CEO ROGER LYNCH 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 transaction has been unanimously approved by both the independent directors of PANDORA and by the board of directors of SIRIUSXM.
Pandora stockholders will receive 1.44 newly issued SiriusXM shares for each Pandora share they own.
Sirius XM said following the deal, which is expected to close in the first quarter of 2019, Pandora stockholders will own 8.6 percent of the pro forma company on a fully diluted basis.
SiriusXM said in its statement on Monday that the deal includes a "go-shop" provision, which allows Pandora to solicit other bids.
Even at the highest prices of the quarter, Sirius XM's purchase of Pandora would represent at least a 30% premium on his investment, so long as he still holds the stock. It still needs approval from Pandora shareholders.