At one point the CBC owned a piece of Sirius XM's Canadian operations, but since a restructuring in May 2017 the CBC no longer has any ownership stake in the company. But that will change. We can expect Pandora to try to upsell some of its own users on signing up for SiriusXM subscriptions, and Sirius may also draw on Pandora's software expertise to help it improve its own services.
"We view the read through to Spotify as slightly negative as it could face a stronger competitor in the USA while at the same time one of the only large swaths of ad-supported listeners in the fast-maturing USA goes off the market", SunTrust analyst Matthew Thornton said.
SiriusXM has thus far failed to attract significant listenership online and in the home.
The transaction builds on SiriusXM's position in subscription radio and as a curator of exclusive audio programming with one of the largest United States audio streaming platforms, enabling SiriusXM to expand its presence beyond vehicles into the home and other mobile areas.
New York-based SiriusXM Holdings Inc. has more than 36-million subscribers in North America, while Pandora has more than 70-million monthly active users.
SiriusXM couldn't possibly forget to mention its "extensive automotive relationships" as a way to beef up Pandora's presence on smartphones, computers, and cars nationwide. After the deal is finalized, Pandora and SiriusXM will continue to operate as independent brands and services. The company believes it can create "cross-promotion opportunities" through the acquisition and build "unique audio packages" that can work across both services.
Creating a promotional platform for emerging and established artists, curated and personalized in ways to deliver the most compelling audio experience that connects artists to their fan bases, as well as new listeners.
Lynch also said in the same statement: "We've made tremendous progress in our efforts to lead in digital audio".
Sirius XM, controlled by media mogul John Malone's Liberty Media Corp, has built a name supplying more than 175 channels to vehicle drivers, but has largely trailed Pandora and Spotify Technology SA in mobile and streaming content.
Sirius XM and Pandora said the transaction is expected to be completed in the first quarter of next year.