SiriusXM’s $3.5 Billion Acquisition of Pandora

Allen & Company LLC and BofA Merrill Lynch are serving as financial advisors to SiriusXM and Baker Botts LLP and Simpson Thacher & Bartlett LLP are serving as its legal counsel. Centerview Partners LLC, LionTree Advisors LLC and Morgan Stanley & Co. LLC are serving as financial advisors to Pandora and Sidley Austin LLP is acting as legal counsel.

Sirius XM Holdings Inc. (NASDAQ :SIRI ) and Pandora Media, Inc. (NYSE 😛 ) signed a definitive agreement under which SiriusXM will acquire Pandora in an all-stock transaction valued at approximately $3.5 billion. The combination creates the world’s largest audio entertainment company, with more than $7 billion in expected pro-forma revenue in 2018 and strong, long-term growth opportunities.

This strategic transaction builds on SiriusXM’s position as the leader in subscription radio and a critically-acclaimed curator of exclusive audio programming with the addition of the largest U.S. audio streaming platform. Pandora’s powerful music platform will enable SiriusXM to significantly expand its presence beyond vehicles into the home and other mobile areas. Following the completion of the transaction, there will be no immediate change in listener offerings.

The transaction has been unanimously approved by both the independent directors of Pandora and by the board of directors of SiriusXM.

The transaction is expected to close in the first quarter of 2019. It is subject to approval by Pandora stockholders, expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and certain competition laws of foreign jurisdictions and other customary closing conditions.

Simpson Thacher advised SiriusXM (NASDAQ: SIRI) with a team including Eric Swedenburg (Picture), Ravi Purushotham, Joey Mayer and Tuca Bihari (M&A); Greg Grogan, Monisha Bhayana and Pinto Adhola (ECEB); Marcy Geller, Rob Holo, Sophie Staples and C.J. Murray (Tax); Lori Lesser and Genevieve Dorment (Intellectual Property); Andy Keller and Lia Toback (Capital Markets); and Brian Steinhardt and Michael Vernace (Credit).

Sidley advised Pandora Media, Inc. with a team including

Martin Wellington, Jennifer Fitchen and Ruchun Ji (M&A). Other team members include partners Bill Blumenthal and Karen Kazmerzak (antitrust); Corey Perry (employee benefits); Ivy Jones (tax); and M&A associates Anna Maria Galinska and Amanda McFarlane.

 

Involved fees earner: Eric Swedenburg – Simpson Thacher & Bartlett; Ravi Purushotham – Simpson Thacher & Bartlett; Johanna Mayer – Simpson Thacher & Bartlett; Luiz Arthur Bihari – Simpson Thacher & Bartlett; Gregory Grogan – Simpson Thacher & Bartlett; Monisha Bhayana – Simpson Thacher & Bartlett; Pinto Adhola – Simpson Thacher & Bartlett; Marcy Geller – Simpson Thacher & Bartlett; Robert Holo – Simpson Thacher & Bartlett; Sophie Staples – Simpson Thacher & Bartlett; Christopher Murray – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Genevieve Dorment – Simpson Thacher & Bartlett; Andrew Keller – Simpson Thacher & Bartlett; Lia Toback – Simpson Thacher & Bartlett; Brian Steinhardt – Simpson Thacher & Bartlett; Michael Vernace – Simpson Thacher & Bartlett; Martin Wellington – Sidley Austin LLP; Jennifer Fitchen – Sidley Austin LLP; Ruchun Ji – Sidley Austin LLP; Anna Maria Galinska – Sidley Austin LLP; Amanda McFarlane – Sidley Austin LLP; William Blumenthal – Sidley Austin LLP; Karen Kazmerzak – Sidley Austin LLP; Corey Perry – Sidley Austin LLP; Ivy Jones – Sidley Austin LLP;

Law Firms: Simpson Thacher & Bartlett; Sidley Austin LLP;

Clients: Sirius XM Holdings Inc.; Pandora Media, Inc.;

 

Author: Ambrogio Visconti