The subscription radio company Sirius XM announced Monday a move to buy the music streamer Pandora in all-stock deal valued at $3.5 billion.
The acquisition would create the world’s largest audio entertainment company, Sirius said in a statement, adding that both brands will continue to operate independently.
“There are no immediate changes to SiriusXM or Pandora content offerings in connection with this announcement,” the company said, adding that, “Ad-free content has been and will continue to be a key differentiator for SiriusXM.”
The newly joined company would have roughly 40 million global audio subscribers, according to TheStreet. In the second quarter, SiriusXM earned about $13.30 on average from its 33.5 million customers, while Pandora collected $6.52 from 5.98 million subscribers.
Both companies boards have approved the deal, which is expected to close at in the first quarter of 2019.
“The addition of Pandora diversifies SiriusXM’s revenue streams with the U.S.’s largest ad-supported audio offering, broadens our technical capabilities, and represents an exciting next step in our efforts to expand our reach out of the car even further,” Sirius XM CEO Jim Meyer said in a statement.
Pandora CEO Roger Lynch added, “Together with SiriusXM, we’re even better positioned to take advantage of the huge opportunities we see in audio entertainment, including growing our advertising business and expanding our subscription offerings.”