SiriusXM CEO Jim Meyer said on Friday, “We have long admired Pandora’s enormous user base and focus on providing listeners with a personalized music experience, as well as its scale and expertise in the ad-supported streaming radio business.”
He also said the deal gives SiriusXM a stake in the music streaming business.
Pandora has over 81 million active users and over 4 million subscribers. It generates about $1.5 billion.
SiriusXM has over 31 million subscribers and generates over $5 billion in revenue each year.
SiriusXM’s business, however, is very dependent on the car market, which is undergoing a seismic shift, and the company faces competition from streaming music services.
Variety concludes, “The Pandora investment represents a kind of long-term insurance policy for Sirius against these market shifts.”
Read more at Variety here.
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