Satellite radio company SiriusXM is acquiring music streaming service Pandora in a $3.5 billion all-stock deal, the companies announced Monday.
Pandora shares rose 10.3 percent to $10.03 a share in premarket trading, while Sirius stock fell 0.4 percent to $6.95 a share.
Shareholders will receive 1.44 of newly issued SiriusXM shares for each Pandora share they hold. The implied Pandora price from this deal is $10.14 a share, or a 13.8 percent premium, according to the press release. The merger agreement includes a “go-shop” provision where the company “may actively solicit, receive, evaluate and potentially enter negotiations with parties that offer alternative proposals following the execution date of the definitive agreement.”
SiriusXM expects the deal to close in the first quarter of 2019.
– CNBC’s John Melloy contributed to this report.
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