Subscription radio company Sirius XM Holdings Inc. just secured a huge deal in acquiring popular music streaming service, Pandora Media Inc.
In an attempt to team up against Spotify Technology and Apple Inc, Sirius agreed to a $3.5 billion purchase, which came just one year after its $480 million investment in the same company.
In fact, according to reports, Sirius’ previous investment now represents its 15% stake in the streaming company.
Although Spotify is the global leader, in regards to subscriptions, with Apple following close behind, the Wall Street Journal reports that Pandora has the largest service in the United States with more than 74 million active listeners.⠀⠀⠀⠀⠀⠀⠀⠀⠀
Still, Pandora has taken a hit, as listeners have gravitated to platforms that “allow listeners to play individual songs on demand,” the publication reports.
But now, under the deal, Sirius will create audio packages to pair its exclusive content and programming with Pandora’s ad-supported service, creating the world’s largest audio entertainment company.
“We believe there are significant opportunities to create value for both companies’ stockholders by combining our complementary businesses,” SiriusXM CEO said in a statement.
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