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 14.4 percent in premarket trading from Friday’s close of $9.09 a share, while Sirius stock fell 1.4 percent from its previous close of $6.98 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. Pandora was trading above that price in the premarket as the merger agreement also 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.”
– CNBC’s
John Melloy
contributed to this report.
This story is developing. Please check back for updates.
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