Deal of the Week: Pandora Got Siriusly Outnegotiated

The Pandora Media Inc. application is seen in the App Store on an Apple Inc. iPhone in an arranged photograph taken in Washington, D.C., U.S., on Friday, May 5, 2017. Pandora is scheduled to release first-quarter earnings figures on May 8. Photographer: Andrew Harrer/Bloomberg

Sirius XM has explored an acquisition of Pandora for at least two years. Last year, Sirius floated a $15-per-share offer for Pandora. More recently, the CEO of Liberty Media, Sirius's majority shareholder, said it would buy Pandora for $10 per share. CNBC reported Sirius's final acquisition offer valued Pandora at $8. After all the negotiation, Pandora reached a deal to sell about 20 percent of the business to Sirius for $480 million, valuing the company around $2.4 billion, or just under $10 per share. Plus, Sirius's investment comes with a 6 percent dividend on its preferred shares. Bloomberg entertainment reporter Lucas Shaw tells host Alex Sherman that evidence indicates Sirius got the better of Pandora in its deal negotiations.

 

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