Pandora is credited for revolutionizing the streaming music game. It was the first recommendation engine, that kicked things off about 15 years ago to pave the way for services like Spotify and Apple Music.
One company that kept their eyes on Pandora and saw them as a threat was SiriusXM. For years, they would try to compete, offering a similar type of service to Pandora's recommendation engine which allowed listeners to psuedo-program their own versions of SiriusXM's radio stations based on preferences for newer bands or classic artists. But now, instead of competing, SiriusXM went and bought the whole company.
CNN reports that after investing $480 million last year to buy 19% of Pandora's stock, today, SiriusXM announced they are buying the company entirely. SiriusXM will be paying $3.5 billion in stock options to acquire the online company, which boasts 70 million active users, offering a free and premium tier.
It will be interesting to see how SiriusXM integrates the service into their business model, which at the moment requires users to pay a fee (something the basic subscription to Pandora does not.)
"We believe there are significant opportunities to create value for both companies' stockholders by combining our complementary businesses," SiriusXM CEO Jim Meyer said in a statement.
Do you still use Pandora?