SiriusXM Pumps $480 Mil Into Pandora
It’s true — SiriusXM will make a $480 million strategic cash investment in digital streaming platform Pandora. Under the terms of the agreement, a subsidiary of SiriusXM will purchase an aggregate of $480 million in newly issued Series A convertible preferred stock of Pandora — which represents 19% of Pandora’s currently outstanding common stock and a 16% stake on an as-converted basis. The capital provided through the SiriusXM investment will allow Pandora to make targeted investments and capitalize on opportunities to build on its position in the streaming radio business. At the same time, Pandora also announced its sale of Ticketfly to Eventbrite for $200 million. Jim Meyer, CEO of SiriusXM, said, “This strategic investment in Pandora represents a unique opportunity for SiriusXM to create value for its stockholders by investing in the leader in the ad-supported digital radio business, a space where SiriusXM does not play today. Pandora’s large user base and its ability to provide listeners with a personalized music experience are tremendous assets. With its strong technology and new product offerings, we believe there are exciting opportunities for Pandora to accelerate its growth and increase value for Pandora and SiriusXM stockholders.”
Greg Maffei, Chairman of the SiriusXM Board of Directors and CEO of Liberty Media Corporation commented, “Liberty Media has long recognized the strength of the Pandora brand and the opportunities in the ad-supported digital radio market. We are very supportive of SiriusXM’s strategic investment.” Pandora CEO and Founder Tim Westergren added, “The investment from SiriusXM infuses resources to help Pandora continue to grow and innovate. With the strategic review behind us, and a strong balance sheet, we look forward to focusing on business execution and the optimization of our strategy.” When the transaction closes, three individuals designated by SiriusXM will be named to the Pandora Board of Directors. One of those individuals will serve as Chairman and SiriusXM designated directors will serve as select Board committee representatives. With these appointments, the Pandora Board will be expanded to nine directors. In connection with the transaction, Pandora agreed with an affiliate of Kohlberg Kravis & Roberts to terminate their Investment Agreement announced on May 8, 2017 and pay KKR a termination fee of $22.5 million.
• And in other major streaming news, Taylor Swift has ended her streaming hiatus and has returned her catalog to all of the major streaming services. Swift made the official announcement last Friday in an Instagram post that read, “In celebration of 1989 selling over 10 Million Albums Worldwide and the RIAA’s 100 Million Song Certification announcement, Taylor wants to thank her fans by making her entire back catalog available to all streaming services tonight at midnight.”
