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Sep 24, 2018

Deals and IPOS: SiriusXM to buy Pandora in all-stock deal valued at $3.5 billion I CNBC


Michael Sheetz


The Pandora Media app is seen on an Apple iPhone.
Andrew Harrer | Bloomberg | Getty Images
The Pandora Media app is seen on an Apple iPhone.
Satellite radio company SiriusXM is acquiring music streaming service Pandora in a $3.5 billion all-stock deal, the companies announced Monday.
Pandora shares rose 10.3 percent to $10.03 a share in premarket trading, while Sirius stock fell 0.4 percent to $6.95 a share.
Shareholders will receive 1.44 of newly issued SiriusXM shares for each Pandora share they hold. The implied Pandora price from this deal is $10.14 a share, or a 13.8 percent premium, according to the press release. Pandora was trading above that price in the premarket as the merger agreement also includes a "go-shop" provision where the company "may actively solicit, receive, evaluate and potentially enter negotiations with parties that offer alternative proposals following the execution date of the definitive agreement."
– CNBC's John Melloy contributed to this report.