Music streamer Pandora Media, Inc. (NYSE:P) has established a working partnership with Sirius XM Holdings Inc. (NASDAQ:SIRI). Sources have it that the acquisition of the satellite radio company is valued at $3.5 billion. It will bring together 36 million subscribers from SiriusXM’s with close to 70 million active from Pandora.The duo’s combination will create the world’s largest audio entertainment Company.
The partnership comes at a time when digital audio advertising is becoming a popular medium in reaching out to consumers. In fact, according to IAB, it has grown from 40 percent in 2017 to $1.6B. However, SiriusXM is set to benefit from Pandora Ad Capabilities, digital presence, and mobile strength. In return, Pandora will tap SiriusXM’s industry expertise and financial strength.
Listeners rush to streaming apps in a burgeoning and crowded market
Tens of millions of listeners are speaking for streaming apps, which are easy to navigate. The demand for such apps is increasing by the day and the two are hopeful of being able to bridge the gap. According to Sirius XM’s chief executive, the merger will help in reaching out to more listeners. It would also lead to the promotion of different services to their already two existing but growing large audiences.
Jim Meyer explained, “Together, we will deliver even more of the best content on radio to our passionate and loyal listeners, and attract new listeners, across our two platforms.”
The streaming business is already very competitive
Meyer was speaking to investors while outlining that their interest was in clinching a market share within the already competitive space. However, he did not mention the competitors but it is on record that Spotify is the industry leader in the streaming business. The music streaming giant supports over 180 million users. Reportedly it has higher paid subscription rates compared to Pandora.
However, Meyer seemed unshaken by the competition citing that their goal is to increase value through subscriptions. In any case, industry estimates indicate that Pandora has an incredible presence in the U.S.
Apparently, this is not the only merger that Pandora has acquired. Earlier in the year, the company acquired AdsWizz. According to the chief executive Roger Lynch, growing the company’s advertising business is the key strategy, which they will use to build on its audience.
This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.