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SiriusXM Investing $480 Million into Pandora
RADIO ONLINE | Friday, June 9, 2017 |
SiriusXM is investing $480 million in Internet radio streaming service Pandora Media Inc., giving it a 19% stake in the company. Concurrently, Pandora is selling its Ticketfly business to Eventbrite for $200 million. Shares of Pandora rose 6.2 percent on Friday to $9.00. The transaction was announced Friday and the company said it would provide a "strong balance sheet, sharpen operational focus, and strengthen the company's board of directors."
SiriusXM will now be able to name three people to Pandora's board, with one serving as Chairman. The board will also expand to nine directors. Pandora said Thursday that the closing of its $150 million investment from private-equity firm KKR & Co. had been postponed. On Friday, Pandora agreed to pull out of the KKR deal and pay a $22.5 million termination fee.
Bloomberg reports as part of the deal, SiriusXM purchased $172.5 million Series A preferred stock, and agreed to buy the rest at a second closing. The stock is convertible into common stock at $10.50 a share, a 14 percent premium to Pandora's average price for the 20-day period preceding June 9.
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