Sirius XM investors don’t appear thrilled with its $3.5 billion buyout of Pandora on Monday, with its stock dropping 6 percent<\/b>
\nSome Sirius XM investors aren\u2019t liking what they\u2019re hearing on Monday, after the satellite radio company announced its $3.5 billion buyout of Pandora.
Shares of Sirius XM dropped more than 6 percent to $6.53 a share in early market trading on news of the all-stock deal. Pandora, on the other hand, is enjoying a 3 percent bump, hitting $9.37 a share about 45 minutes after the market opened. That increase was expected, with Sirius XM paying an implied price of $10.14 per share \u2014 around a 15 percent premium \u2014 in its deal with Pandora.
\u201cWe believe there are significant opportunities to create value for both companies\u2019 stockholders by combining our complementary businesses,\u201d Sirius XM CEO Jim Meyer said in a statement . \u201cThe addition of Pandora diversifies Sirius XM\u2019s revenue streams with the U. S.\u2019s largest ad-supported audio offering, broadens our technical capabilities, and represents an exciting next step in our efforts to expand our reach out of the car even further.\u201d
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Pandora \u2014 one of the first platforms to usher in the music streaming era \u2014 has more than 70 million monthly listeners, but faces stiff competition from Spotify and Apple Music, among others. Sirius XM, which already owned a 15 percent stake in Pandora before Monday\u2019s announcement, has 36 million paying subscribers in the U. S., according to its release. Both companies will continue to operate independently, Meyer said.<\/p>\n

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