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Shareholders will receive 1.44 of the newly issued shares of Sirius XM for each share held by Pandora.
Photo:
Jason Davis / Getty Images
Subscription radio company
Sirius XM Holdings
Inc.
SIRI -0.43%
buys a music streaming company
Pandora Media
Inc.
P -3.19%
In an equity deal, companies estimated they were worth about $ 3.5 billion.
Shareholders will receive 1.44 of Sirius XM's newly issued shares for each share held by Pandora, the two companies announced on Monday. Sirius XM holds about 15% of Pandora's preferred convertible stock.
The agreement includes a "go-shop" provision, which allows Pandora and its board of directors to discuss with other parties the possibility of entering into a different agreement.
The market value of the transaction stands at $ 2.68 billion, taking into account Sirius' closing price on Friday and the number of outstanding shares of Pandora, according to FactSet. Pandora had $ 250.3 million of net long-term debt and $ 505.7 million of convertible redeemable preferred shares at the date of its last quarterly deposit.
The acquisition of Pandora by Sirius XM is expected to be completed in the first quarter of 2019, the two companies said.
Sirius shares rose 0.1% pre-market, while Pandora shares rose 11%.
Corrections and amplifications
Pandora had $ 250.3 million of net long-term debt and $ 505.7 million of convertible redeemable preferred shares at the date of its last quarterly deposit. An earlier version of this article incorrectly stated that there was a $ 273 million long-term debt and a redeemable convertible preferred stock of $ 490.8 million.
Write to Allison Prang at [email protected]
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