Sirius XM is in talks for a minority stake in Pandora
- Author: Zachary Reyes Jun 08, 2017,
Jun 08, 2017, 21:30
Pandora announced a "brief" extension "to enable Pandora to explore interest expressed by a strategic investor in making a substantial minority investment", Thurdsay. Here's is Pandora's complete statement...
Pandora said that if it determines that the KKR investment continues to be in the best interest of its stockholders, the KKR investment will close immediately following the expiration of the extended period.
If the negotiations between Sirius XM and Pandora come to fruition, the deal would come after private equity firm KKR & Co LP agreed last month to invest $150 million in Pandora.
Reuters confirmed Thursday morning that Sirius XM is negotiating a so-called Pipe deal - a private investment in public equity with Pandora's owners.
Any collaboration between Sirius XM and Pandora would be a beneficial for the two companies as both have overlapping audience.
Shares of Internet radio purveyor Pandora Media (P) are up 11 cents, or 1.3%, at $8.59, as speculation swirls about an investment in the company by SiriusXM (SIRI).
A deal with Sirius XM would likely nullify the KKR transaction. Chief Executive Tim Westergren has, at times, said Pandora's future lies in pursuing its music-streaming efforts on its own, and has set a target of Pandora reaching $4 billion in revenue by 2020. However, according to a CNBC report, if Pandora is able to sell itself within the 30-day deadline, it will have to pay KKR $15 million, which the company viewed as an insurance-like policy.
Pandora's stock is down 30 percent in the last 12 months, as the company faces stiff competition from services such as Sweden's Spotify, Apple Inc's Apple Music, Alphabet Inc's Google Play Music and Amazon.com Inc's Music Unlimited, which dominate the on-demand music service market.