Sirius XM is set to acquire Pandora streaming service for a whopping $3.5 billion. The satellite radio brand plans to keep the service the way it is for the 70 million active users, 5 million if which pay for the streaming service. Pandora has double the amount of users compared to Sirius who invested $480 million for a 19 percent stake in Pandora last year. This deal means an outright purchase of the streaming brand.
Pandora has been struggling over recent years to maintain relevance amongst services like Apple Music and Spotify. After launching Pandora Premium last year letting consumers curate playlists, the company lost $200 million and continued to struggle. Once the deal closes in the first quarter of 2019, Sirius XM will become the largest audio entertainment company with a combined $7 billion revenue.