Following Sirius XM’s announcement that it was going to invest $480 million in the streaming service, Pandora founder and CEO Tim Westergren sent a memo to staff to share his perspective Friday morning. Read the entire memo, which Pandora shared with Variety, below:
I know many of you have been waiting for news about our company this week. In a few moments, we’ll announce that Pandora has entered into an agreement with SiriusXM for a strategic investment of $480 million. We’ve decided to go with this investment from SiriusXM instead of the KKR funding we announced on May 8. We’re also announcing separately that we’re selling the Ticketfly business to Eventbrite and partnering with them to continue our live events strategy. I know it’s a lot to take in, and I want to share my perspective on why this is good news.
Today we move away from the uncertainty that has been swirling around Pandora with what we believe is the best path forward for our company. We’re gaining a massive infusion of cash on our balance sheet, which will give us the flexibility and security to pursue our strategy and grow our business in an intensely competitive environment.
We’re also gaining a new and powerful ally in SiriusXM. They are a formidable force in media and the music industry. We’ll have the chance to leverage their expertise and explore ways to collaborate. With SiriusXM on our side, the table is now set for us to attack the opportunity we have all worked so hard on for so long.
And with Eventbrite as our new partner on the ticketing side, we’ll be able to better focus internally on our core business, while preserving the opportunity to bring live events into Pandora in a unique, and now expanded, way. We’ve proven our thesis on the powerful combo of Pandora and live events. And we now get to add events on the Eventbrite platform as well. We’re profoundly grateful to the Ticketfly team for all we’ve accomplished together and look forward to all that’s still to come in this new structure.
We knew we had some big decisions to make. Now with the clarity today’s announcement brings, it’s time to lock arms, stay focused and double down on what we do best to compete in this market and win.
I recognize there will be lots of questions. We’ll come together at 11AM PT / 2PM ET today to answer them and talk more. Watch for an invite shortly.