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It's no secret that SiriusXM has lost some of its luster with the rise of cheap music streaming services, but as the old saying goes, "if you can not beat them, join them" . its intention to buy Pandora, which is one of the most popular music streaming services. The proposed acquisition is valued at $ 3.5 billion and the resulting company will be one of the largest music streaming companies.
In fact, the purchase of Pandora would greatly expand SiriusXM's audience. SiriusXM currently has approximately 36 million satellite radio subscribers, but with 70 million active users per month, Pandora has almost doubled that number. It is not hard to imagine that the acquisition of Pandora would be a boon to SiriusXM, as it would immediately put its satellite radio business ahead of many more people.
With this in mind, we can probably expect SiriusXM to begin offering monthly subscription plans that include both radio and music streaming via Pandora. SiriusXM states that cross-promotional opportunities are a critical factor in this acquisition and that it will leverage "SiriusXM's proprietary content and programming with the subscription and ad levels supported by Pandora to create unique audio packages" .
This is only part of the puzzle, because SiriusXM has also been working to strengthen its presence in the car recently. Last year, the company acquired the company Automatic, which manufactures diagnostic adapters for vehicle plug-in. We might see something like an ODB-II dongle made automatically with Pandora integrated streaming support. We will definitely keep an eye on such a device in the 5G era.
In short, there are many possibilities for a SiriusXM and Pandora merger, especially when you consider the latter's attempts to develop its embedded offerings. The good news is that the basic service of both companies will not change once the acquisition is complete, which will now require regulatory approval before that happens. We will soon see what the future holds for these two companies, so stay tuned.
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