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Pandora Has Only Itself to Blame for Sirius Sale

The company always spent more than it made and failed to shift its business model. 

The long fade-out.

The long fade-out.

Photographer: Michael Nagle/Bloomberg 

It’s worth a moment of wistful reflection whenever a company is sold. Pandora Media Inc.’s investors and believers are justified for feeling more wistful than usual. 

The internet radio company announced an agreement on Monday to sell itself to patron and part-owner Sirius XM Holdings Inc. The sale was inevitable the moment Sirius XM swooped in last year and handed Pandora some much-needed cash in return for a slug of preferred stock. Sirius XM has been the inevitable buyer of Pandora for several years, but it was happy to wait out Pandora’s stubborn management as the price for its prey crept lower and lower.