SiriusXM reviving talks to buy Apple Music competitor Pandora - report

Posted:
in General Discussion
Satellite radio company SiriusXM is reportedly in "active discussions" about buying Pandora, which recently began tackling Apple Music head-on through the launch of its on-demand Premium service.




No price agreement has been reached, sources informed the New York Post. Greg Maffei, the CEO of SiriusXM backer Liberty Media, has previously said that Pandora is worth about $10 per share, just slightly more than it was trading for on the New York Stock Exchange on Thursday morning.

On May 9 Pandora signed a $150 million investment deal with KKR, which is set to close after 30 days. Rumors have hinted that the company is hoping to sell itself within that window.

In July last year Maffei is said to have floated a bid valued at $15 per share. Renewed interest could be linked to a lower cost, combined with Pandora finally having an on-demand service ready.

Pandora is a major player in online streaming, but until the Premium launch, it was a radio-only service that let people vote songs up or down to customize stations. In the March quarter its active listeners were down year-over-year from 79.4 million to 76.7 million, although revenue was up 6 percent to $316 million.

The company also saw 1.3 million trial users join Premium, even though the service only exited an invite phase in April.

Pandora is believed to rely mostly on ad revenue, having far fewer paid customers than Apple Music's 20 million and Spotify's 50 million. The balance could shift with the launch of Premium, particularly if SiriusXM is able to throw its marketing behind it.
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Comments

  • Reply 1 of 10
    mobiusmobius Posts: 377member
    They can't be sirius!
    SpamSandwichbigpicszroger73jbdragon
  • Reply 2 of 10
    SpamSandwichSpamSandwich Posts: 30,734member
    Go for it!
    bigpicsravnorodom
  • Reply 3 of 10
    calicali Posts: 3,495member
    PandoraSiriusXM
    zroger73ravnorodom
  • Reply 4 of 10
    macbootxmacbootx Posts: 35member
    Apple needs to buy Pandora if only for the rights to it Music Genome Project technology. Adding that to Apple Music would be huge IMO
  • Reply 5 of 10
    bigpicsbigpics Posts: 1,355member
    cali said:
    PandoraSiriusXM
    P(X)MS   ;)
    zroger73
  • Reply 6 of 10
    zroger73zroger73 Posts: 708member
    The less SiriusXM is involved in my life, the better.

    However, I'll admit that I've only been paying about one-third of the regular price for their service for years.

    One of my biggest beefs with them was how they would keep your credit/debit card or checking/routing numbers on file and charge a full-price, automatic renewal if you forgot to call and cancel/renegotiate periodically.

    During my most recent 6-for-$30 renewal, I noticed they now offer a one-time payment using a credit/debit card. Previously, I had to send a cashier's check for each renewal to keep them from storing and using my payment information.
  • Reply 7 of 10
    Satellite radio is still a thing?  Makes perfect sense for them to cover their bases since music streaming (and podcasts, etc.) makes their service a dinosaur.
  • Reply 8 of 10
    ravnorodomravnorodom Posts: 166member
    cali said:
    PandoraSiriusXM
    5 years later: SpotifyPandoraSiriusXM
  • Reply 9 of 10
    SiriusXM  can't survive Howard's retirement if it remains inits current form. Buying dying businesses seems like an odd strategy, but misery loves company.
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