×
You will be redirected back to your article in seconds

Pandora Shareholders Approve Takeover by Sirius XM, And Pandora CEO Roger Lynch Is Out

Pandora Media’s stockholders approved Sirius XM’s proposed takeover, and with the deal set to close shortly Roger Lynch will be out as Pandora’s CEO.

Lynch will exit once the deal officially closes, the company announced after the shareholder vote Tuesday. Sirius XM CEO Jim Meyer will lead the combined company, which brings together Pandora’s music and audio streaming business and Sirius XM’s core satellite-radio business. Lynch was named CEO in September 2017 after heading Dish Network’s Sling TV.

In addition to Lynch’s departure, other senior Pandora execs also exiting include general counsel Steve Bene, CFO Naveen Chopra, and chief human resources officer Kristen Robinson.

Sirius XM’s all-stock acquisition of Pandora, first announced in September, is expected to “close shortly” subject to customary closing conditions, according to Pandora. Originally valued at $3.5 billion, the deal is now worth less than $3 billion with the decline in Sirius’ stock since it was announced.

Back in November, Lynch — in announcing third-quarter 2018 earnings — had said, “I couldn’t be more excited about Pandora joining forces with SiriusXM. A combined Pandora-SiriusXM will create the world’s largest audio entertainment company, bringing Pandora additional resources to accelerate growth and building on SiriusXM’s leadership in the car, subscription expertise, and unique content.”

Sirius XM’s stock has dropped 18% since the Pandora deal was announced. A big reason for that has been “the lack of potential synergy quantification, as well as limited public disclosure from SIRI on Pandora’s future [free cash flow] trajectory under its stewardship,” B. Riley FBR analyst Zack Silver wrote in a note Tuesday. Now that Pandora’s shareholders have OK’d the deal, “we believe SIRI will have more latitude to discuss potential synergies and its pro forma financial outlook” when it reports Q4 earnings on Wednesday (Jan. 30).

Under the terms of the deal, each share of Pandora common stock will be converted into 1.44 newly issued shares of Sirius XM common stock. Sirius XM common stock will continue to trade under the existing ticker symbol “SIRI” on the Nasdaq Global Select Market, while Pandora is expected to be delisted from the New York Stock Exchange.

Separately Tuesday, SiriusXM announced that its board approved an additional $2 billion of common stock repurchases, taking the company’s total authorization to $14 billion since the inception of the stock-buyback program in early 2013. It also announced a quarterly dividend of 1.21 cents per share of common stock.

At the special meeting of Pandora stockholders, holders of approximately 75% of the outstanding voting power of Pandora voting securities were voted, with approximately 97% of the votes cast in favor of the transaction.

Popular on Variety

More Music

  • Atmosphere71st Annual Primetime Emmy Awards, Show,

    Emmy Viewers Not 'Feelin' Good' About Bizarre Music Choices

    It was known ahead of time that the Emmy Awards planned to dispense with a traditional orchestra or pit band for the walk-up and bumper music. What wasn’t anticipated was that the music choices were being outsourced to a bar mitzvah DJ in Des Moines. Or, very possibly, it was a local who had found [...]

  • Born to Be Live: 'Easy Rider'

    Born to Be Live: 'Easy Rider' Gets a Concert/Screening Premiere at Radio City

    In a year full of major 50th anniversary commemorations — from Woodstock to the moon landing — why not one for “Easy Rider,” Dennis Hopper’s hippie-biker flick that was released on July 14, 1969? That was the idea when a rep for Peter Fonda, who starred in the film as the laid-back Captain America, reached out [...]

  • Rob Thomas Sammy Hagar

    Sammy Hagar Joins Rob Thomas for 'Smooth' Performance (Watch)

    Who do you call when your pal Carlos Santana has plans on a Friday night? If you’re Rob Thomas, you recruit another famous friend, rocker Sammy Hagar, who turned up to help the singer close out the latest show of his Chip Tooth Smile tour with a performance of “Smooth” at the Fox Performing Arts [...]

  • US record producer The-Dream arrives for

    Top Music Publishers Come Together for Songs of Hope Honors

    The 15th annual Songs of Hope honors united songwriters, music industry insiders and more than a few preeminent doctors at producer Alex Da Kid’s Sherman Oaks compound on Thursday night. Jimmy Jam returned to host the event, which served as a fundraiser for the ever-vital City of Hope medical treatment center as well as a [...]

  • Monkees/Badfinger/Nazz Supergroup Takes Beatles' 'White Album'

    Monkees/Badfinger/Nazz Supergroup Gets Back to '68 by Touring Beatles' 'White Album'

    The 50th anniversary re-release of 1969’s “Abbey Road” may be just days away, but that doesn’t mean Beatles fans have been there and done that when it comes to celebrating ’68. Todd Rundgren, the Monkees’ Mickey Dolenz, Badfinger’s Joey Molland and several other name musicians of a certain vintage are teaming up to go out [...]

  • Rob Cowan, Greg Silverman'The Conjuring 2'

    Greg Silverman’s Stampede, School of Rock Team for Unscripted Series (EXCLUSIVE)

    Former president of Warner Bros. Pictures Greg Silverman is partnering with School of Rock through his content creation company Stampede. The collaboration with the music school will create exclusive content, starting with the development of an unscripted series.  School of Rock operates a network of performance-based education franchises that offer students of all ages guidance [...]

More From Our Brands

Access exclusive content