“Subscription radio company SiriusXM says it’s buying music streaming service Pandora Media Inc. in a deal valued at about $3.5 billion that will allow it to expand its service beyond cars and into mobile devices and homes,” states an unsigned Wednesday (9/26) Associated Press article. “Pandora has faced intense pressure from competitors like Spotify and Apple. Its last quarterly profit was in December 2014. But a buyout by SiriusXM, which made a $480 million investment in Pandora in June 2017, may be the boost the business needs…. SiriusXM’s relationships with automobile companies will open the door for Pandora to have better distribution in that market. Meanwhile, the deal will help SiriusXM tap into Pandora’s mobile strength while giving it the chance to improve in areas such as making personalized listening recommendations. New York-based SiriusXM Holdings Inc. has more than 36 million subscribers in North America, while Pandora has more than 70 million monthly active users.… Data from the Recording Industry Association of America indicates consumers are increasingly moving away from physical music purchases like CDs, as well as from digital downloads, in favor of streaming.”
Posted September 27, 2018
