Sirius to invest $480m in Pandora

New York

Sirius XM Holdings Inc said it will invest $480 million in Pandora Media Inc, giving the satellite radio company better exposure to internet music streaming while providing financial footing to Pandora. While Sirius XM has a strong presence in the auto market, where its channels are offered in most new cars in the United States, it has trailed Pandora and other music providers in mobile and streaming content. The relationship could give Sirius expertise in expanding its listening base outside of the car. “We believe there are future opportunities to accelerate Pandora’s growth and further increase stockholder value,” Sirius XM Chief Executive Officer Jim Meyer said in a statement. While the companies did not provide details about how they would work together, Barclays analyst Kannan Venkateshwar said Sirius XM could bundle Pandora services to its customers, similar to how Amazon sells HBO and Showtime subscriptions.—Reuters

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