SiriusXM will acquire Pandora in a $3.5 billion all-stock deal, the companies announced Monday. The deal between SiriusXM — a satellite radio company — and Pandora — a music streaming company — will create the world’s largest audio entertainment company, they said in a joint release. The companies hope to cross-promote between SiriusXM’s more than 36 million US subscribers and 23 million annual trial listeners, and Pandora’s more than 70 million monthly active users.
Pandora stock has soared nearly 90 percent during the past year. While the music streaming business is thick with competition — names such as Spotify, Amazon and Apple have their own platforms — Pandora reported a smaller-than-expected earnings loss for its second quarter and announced it had about 6 million premium subscribers. SiriusXM expects the deal to close in the first quarter of 2019.