Two of the biggest names in music are merging. SiriusXM is officially purchasing Pandora after previously investing $480 million in the streaming service.
The combination creates the world’s largest audio entertainment company, with more than $7 billion in expected pro-forma revenue in 2018.
The deal includes a “go-shop” provisions which means that Pandora is allowed to entertain other offers. The deal would not formally close until sometime in 2019 after the timeframe for this provision ends.
The buyout had long been rumored, but Pandora will remain an independent service. This should help Pandora become profitable as the two can now share userbases for advertisements. This also helps SiriusXM move even closer to its dream of personalized radio channels.