SiriusXM and Pandora have completed their merger, making SiriusXM the world’s largest audio entertainment company. The merger combines SiriusXM’s curated and exclusive subscription-based content with Pandora’s highly-personalized, free streaming platform. As a result of the transaction, SiriusXM is now able to reach more than 100 million listeners with the company’s audio products.
Those who enjoyed SiriusXM and Pandora separately will still be able to use the same products to which they have become accustomed. In addition, the newly-merged company intends to offer new audio packages that deliver a broader range of content to listeners.
Shortly after the transaction was finalized, the merged company launched a targeted promotion to SiriusXM subscribers and Pandora listeners that offers a subscription for $5 per month. Listeners may choose between the “News Talk,” “Mostly News,” or, “Mostly Music” packages. SiriusXM subscribers may also receive an extended 14-day trial to Pandora Premium service.
As a result of the merger, the outstanding Pandora shares that are not already owned by SiriusXM will be exchanged for a fixed ratio of 1.44 new shares of SiriusXM. Pandora CEO Robert Lynch will be ending his tenure, and Jim Meyer of SiriusXM will take over the role for the merged company.
Companies are required to work out a multitude of complex business and financial details when entering into a merger. A mergers and acquisitions attorney can help San Diego corporations ensure no detail is overlooked during times of major transition. When it comes to critical business transactions, even a minor error can have a very costly impact. Therefore, it may be wise to consult an experienced attorney before moving forward.
Source:Music Business Worldwide, “Sirius Completes $3.5BN Acquisition of Pandora,” Murray Stassen, February 1, 2019