Sirius XM has just announced that they intend on infusing a $450 million USD investment in streaming radio service Pandora. In exchange, Pandora will give SiriusXM a 16 percent ownership stake in the company.
“This strategic investment in Pandora represents a unique opportunity for SiriusXM to create value for its stockholders by investing in the leader in the ad-supported digital radio business, a space where SiriusXM does not play today. Pandora’s large user base and its ability to provide listeners with a personalized music experience are tremendous assets. With its strong technology and new product offerings, we believe there are exciting opportunities for Pandora to accelerate its growth and increase value for Pandora and SiriusXM stockholders,” said Jim Meyer, CEO of SiriusXM in a written statement.