Following the news, shares of Pandora climbed more than 8% in the premarket session, while that of SiriusXM fell over 4%.
The combination will create the largest audio entertainment company. Pandora will benefit from SiriusXM’s scale, industry expertise and financial resources, while SiriusXM will benefit from Pandora’s mobile strength, digital presence, and ad capabilities. Following the completion of the transaction, there will be no immediate change in listener offerings.
For the full-year 2018, SiriusXM reiterated its previously provided guidance. The company still predicts self-pay net subscriber additions of about 1.15 million, revenue over $5.7 billion, adjusted EBITDA of about $2.175 billion, and free cash flow of about $1.5 billion.
Pandora reiterated its third-quarter revenue outlook of $390 million to $405 million and adjusted EBITDA in negative $25 million to negative $10 million.
The combined company is expected to achieve over $7 billion in pro-forma revenue in 2018 and strong, long-term growth opportunities. The combined company will get the benefit of SiriusXM’s base of more than 36 million subscribers across North America, 23 million-plus annual trial listeners and Pandora’s more than 70 million monthly active users.
Shares of SiriusXM ended Friday’s regular session down 0.43% at $6.98 on the Nasdaq, while Pandora stock ended down 3.19% at $9.09 on the NYSE.