Network digital satellite radio SiriusXM buy service streaming Pandora music for $3.5 billion, or $10,14 per share. About it reports a press-service SiriusXM. Reuters notes that the company wants to compete with Apple Music and Spotify. Shares of Pandora on the news of the deal has risen by 8.58% to $10,65 prior to the auction. SiriusXM shares are trading at $ 6.89 (+1.29%) in the previous auction.
For shareholders of Pandora SiriusXM offer means a premium of approximately 13.8% compared to the weighted average share price for the last 30 days, says Techcrunch. The management of both companies have approved the transaction involving the position of the go-shop. It allows the Board of Directors of Pandora after the signing of the agreement to consider purchase offers from other investors. It is expected to be closed in the first quarter of 2019 In 2017 SiriusXM has already invested in service of $480 million, now she owns 15% of the company. The latest deal will create the world’s largest entertainment audiocompany, the statement said SiriusXM.
SiriusXM plans to promote via both platforms and the network of radio stations and streaming service. The company soon will offer a package with a subscription to SiriusXM radio and a premium subscription to Pandora. SiriusXM expects to promote Pandora among American motorists. Itself to sit radio stations have long enjoyed their popularity.
Pandora is a public company since 2011, She has made a bet on streaming music using intelligent systems, searching the tracks depending on the interests of users, long before Spotify, Apple Music and SoundCloud, notes Techcrunch. Despite this, since the IPO has been losing money. Now the audience Pandora has over 70 million active listeners, the vast majority of them are not premium subscribers. Paid subscribers have Pandora just about 6 million, while Spotify has 83 million subscribers. Techcrunch says that paid users, tend to increase average revenue per user. But Pandora never understood how to get their free users to buy a subscription.
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