Under the terms of the agreement, a subsidiary of SiriusXM purchased $172.5 million of Series A preferred stock upon execution of the agreement on June 9, 2017 and today purchased an additional $307.5 million of the Series A preferred stock, the companies announced in a press release Friday. The Series A preferred stock is convertible into common stock at a purchase price of $10.50 per share.
Upon the closing of the purchase, SiriusXM chairman Greg Maffei, CEO James E. Meyer and CFO David Frear were named to the Pandora Board of Directors; Maffei was also named Chairman of Pandora. Elizabeth Nelson left the board, which now consists of nine directors.
The move caps a tumultuous transitional period for Pandora, which was a digital radio pioneer, but has lost ground — and many millions of dollars — in recent years in its attempts to become a full-service streaming company as it lost listeners to services like Spotify and Apple Music. Three weeks after the Sirius deal was announced, co-founder and CEO Tim Westergren left the company. New CEO Roger Lynch, formerly of Sling TV, starts on Sept. 18; acting CEO Naveen Chopra spoke optimistically about the company’s road ahead at the Goldman Sachs Communicopia conference earlier this month.
Pandora’s revenue in 2016 was $1.3 billion with losses at $343 million. The company had 4.85 million subscribers as of 2017.