The long and contentious courtship between Pandora and SiriusXM was finally consummated on Friday morning, when the two companies struck a deal that will see Sirius making a $480 million cash investment in the streaming radio giant, bringing it a 19% stake in the company. The deal ends months of jockeying, which saw Greg Maffei, CEO of Sirius’ parent company Liberty Media, playing with Pandora’s stock like a cat with a bug, making public comments about its value that routinely sent its share prices plunging. But it’s all love now, at least for the moment, as this letter to Sirius staff from CEO Jim Meyer shows.
To: SiriusXM Employees
I am excited to tell you about an important announcement we made this morning. We have reached an agreement under which SiriusXM will make a $480 million investment in Pandora and appoint three individuals to the Pandora Board of Directors. (See the joint press release below.)
We have long admired Pandora’s enormous user base and focus on providing listeners with a personalized music experience, as well as its scale and expertise in the ad-supported streaming radio business. With its strong technology and exciting new product offerings, we believe there are future opportunities to accelerate Pandora’s growth and further increase stockholder value.
And while we look forward to supporting Pandora and its long-term growth, this investment is compelling for SiriusXM as it represents a unique opportunity for us to create value for our stockholders by investing in a leader in the streaming radio market.
To be clear, this is a smart financial decision – it is not a merger or business combination. As such, it’s business as usual for us at SiriusXM. You should stay focused on delivering our unparalleled exclusive content and compelling bundle of audio programming, as well as our array of connected vehicle services. We will continue to succeed by providing the best service and content, building our subscriber base, and delivering strong financial performance.
I want to thank you, as always, for all that you do for SiriusXM.
Let’s keep up the great work.