sirius xm AP Photo/Mark Lennihan

  • Sirius XM has actually consented to pay $3.5 billion for Pandora in an all-stock deal.
  • The offer has an implied cost of $1014 a share, and consists of a “go-shop” arrangement.
  • Watch Sirius XM and Pandora sell actual time.

Sirius XM Holdings will obtain Pandora for $3.5 billion in an all-stock deal, producing the world’s biggest audio-entertainment business, the 2 sides revealed Monday.

The offer, that includes a “go-shop” arrangement that enables Pandora to look for a much better deal, will pay existing Pandora investors 1.44 newly-issued Sirius XM shares for every single share they own. The indicated cost of $1014 a share is a 13.8% premium to Pandora’s 30- day volume-weighted typical cost.

” We have actually long appreciated Pandora and their group for their popular customer offering that has actually brought in a huge audience, and have actually been impressed by Pandora’s tactical development and more powerful execution,” Sirius XM CEO Jim Meyer stated in the release

” Our company believe there are substantial chances to develop worth for both business’ investors by integrating our complementary services. The addition of Pandora diversifies Sirius XM’s earnings streams with the United States’s biggest ad-supported audio offering, expands our technical abilities, and represents an interesting next action in our efforts to broaden our connect of the vehicle even further.”

Along with the statement, Sirius XM restated its full-year 2018 outlook and Pandora restated its third-quarter outlook.

Pandora shares are up more than 9% on the news, trading simply listed below $10 On The Other Hand, Sirius XM’s stock is down about 2% at $6.84 a share.

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