SiriusXM Could Partner With Live Nation After Pandora Acquisition

Following the purchase of the music streaming service Pandora Media, industry insiders are wondering if SiriusXM could team up with Live Nation Entertainment next.

Last week, SiriusXM announced its $3.5 billion acquisition of Pandora. After acquiring the streaming service, rumors have been flying regarding SiriusXM and Live Nation. Both companies are under Liberty Media, which already owns 34 percent of  Live Nation and 72 percent of SiriusXM. Additionally, Liberty CEO Greg Maffei is the chairman of both.

According to BTIG Research analyst Brandon Ross, the merger of the two companies is “inevitable.” Ross said this past summer that investors believe this as well, noting that while Pandora and SiriusXM have merit, Live Nation “completes the puzzle,” Variety reports.

“We and a growing group of investors have come to believe a nearer-term combination of SiriusXM and Live Nation is inevitable,” Ross said. “We believe Liberty President and CEO, Greg Maffei, has long desired to combine Sirius and Live Nation into a single music distribution company and has encouraged a marriage of his two music industry interests in the past.”

Ross said the potential deal could work since SiriusXM has a “terminal value problem” and Live Nation “is near maximum leverage.” Macquarie Capital analyst Amy Yong added that the addition of Live Nation “could be compelling.”

While the merger has advantages, Ross claims that SiriusXM would have to “pay a significant premium to get a deal done.” He said that one of the “puzzling” aspects of the Sirius-Pandora deal is the all stock financing, which could mean “Sirius is saving that cash for an eventual cash component to a Live Nation deal.” Plus, SiriusXM isn’t the only company after the ticketing giant – he said that Amazon and Spotify are also potential competitors.

Earlier this year, SiriusXM CFO David Frear denied interest in the merger, saying that the company is a “cash-flow machine” and they need to “look at ways to deploy the capital and grow the business, first through organic investments.” Nonetheless, he said the company is “constantly looking” and “when we see things of value, we’ll go.”

The Sirius/Live Nation rumors come in light of a third class-action lawsuit against Ticketmaster – whose parent company is Live Nation –  after reports showed the ticketing company’s resale operations. Reports by the CBC and the Toronto Star outline the pro-broker programs Ticketmaster operates, noting that the company works closely with professional ticket brokers although they are known as a primary box office.

Cheap tickets with no service fees at TicketClub.com

Will Live Nation and SiriusXM Become a Single Music Behemoth?

a group of people standing on a stage in front of a crowd: rs-239739-The-Roots-Picnic---Photo---Dan-SozanskiDS-PhotographyLive-Nation© Provided by Penske Media Corporation rs-239739-The-Roots-Picnic—Photo—Dan-SozanskiDS-PhotographyLive-Nation SiriusXM’s acquisition of Pandora, a $3.5 billion deal announced last week, could just be the beginning of the satellite radio giant’s ambitions. For years, Wall Street analysts have been speculating if the company might join forces with live events powerhouse Live Nation Entertainment, which also owns Ticketmaster — and the likelihood of that seems to have ticked up after its Pandora purchase.

There are a few key points to suggest SiriusXM’s interest in Live Nation: The two companies are both under the umbrella of mass media giant Liberty Media, which owns 34 percent of Live Nation and 72 percent of SiriusXM; Liberty’s CEO Greg Maffei is the chairman of both; as music-streaming services continue to force competition in the industry, a merger between the two groups could create one lucrative music distribution company that controls several different access points for fans in the music market. Liberty Media has also made plays in the past for radio broadcasting giant iHeartMedia, suggesting Maffei’s interest in marrying major music companies together. With SiriusXM now in control of Pandora, the company’s fusion with a second big player with advertising power and brand relationships — and one with which it already has close ties — may be a natural course.

“SiriusXM and Pandora has merit, but Live Nation completes the puzzle,” BTIG Research analyst Brandon Ross — who has called the merger of the two companies “inevitable” for two years and said this summer that investors increasingly believe it to be as well — wrote in a note last week. Pandora and Live Nation have “numerous synergies” between them, he said, such as the potential to leverage the former’s large platform and sponsorship strengths for marketing and promotion of tours. Ross also pointed out that SiriusXM’s all-stock financing in its Pandora deal makes little sense for a company with such “cash firepower,” and that “perhaps Sirius is saving that cash for an eventual cash component to a Live Nation deal.” The addition of Live Nation to the portfolio certainly “could be compelling,” Macquarie Capital analyst Amy Yong has said as well.

But for now, any merger or acquisition talks are just speculation. On a corporate conference call following the Pandora announcement on Monday, Ross asked SiriusXM about a potential Live Nation acquisition, and CEO Jim Meyer responded with a bit of equivocation: The company has “done the math” and “certainly [has] the firepower to do other things if we want to,” he said, but such an deal is “not on my mind right now.”

Yet the music industry and Wall Street are both keeping their eyes peeled. At an investor conference in January, SiriusXM CFO David Frear denied any interest in major mergers and acquisitions, saying the company is “just a cash-flow machine. We look at ways to deploy the capital and grow the business, first through organic investments.” But, he added: “We’re constantly looking. And when we see things of value, we’ll go.” Little over half a year later, the company spent $3.5 billion to take control of the largest digital audience in America.

 

 

SiriusXM Announces Plan To Buy Pandora Internet Radio Service

a close up of a microphone© Provided by IBT USIn a blockbuster move, Satellite radio giant SiriusXM on Monday announced plans to add a major audio streaming service to its business portfolio. The company revealed it will acquire the Pandora internet radio service, adding a significant online streaming audience to its total listenership.

The all-stock acquisition is estimated at $3.5 billion, according to CNBC. The figure is not far off from the $3.3 billion Sirius’ paid for XM in 2008, which made SiriusXM the primary provider of satellite radio in the United States. The deal took well over a year to get approved by the Federal Communications Commission.

The merger of SiriusXM with Pandora would bring together more than 100 million total listeners, making it the largest audio entertainment provider.

Shares of SiriusXM (SIRI) on Monday dropped by more than 6 percent, while Pandora (P) rose by more than 4 percent.

Pandora primarily provides its users with internet radio stations that will alter what songs they play based on the user’s feedback. A Pandora listener can give a thumbs up or thumbs down to a song, which will help build playlists for that user in the future. It is not an on-demand streaming service like Spotify.

a close up of a device© Provided by IBT USGiven its feature limitations and the fact that it is only available in the United States, Pandora is not a traditional competitor to services like Spotify or Apple Music. Pandora has 6 million paid subscribers, who get access to better streaming and fewer advertisements. Spotify, meanwhile, added 8 million paid subscribers in the second quarter of 2018 alone.

As for what this merger means for SiriusXM and Pandora listeners, the satellite radio provider was mum on specifics in its announcement. Subscription prices and content offerings will stay the same for now, as the two services will “continue to operate as separate services under their own brands.” SiriusXM also promised ads will not come to its satellite radio service, as a lack of advertising has always been a staple of its business model.

“Together, we will deliver even more of the best content on radio to our passionate and loyal listeners, and to new listeners, across our two platforms,” the announcement said. “SiriusXM and Pandora are continuing to provide the content, products and services you expect from us.”

 

SiriusXM’s Pandora Deal Consolidates Digital Radio Amid Increasing Competition

Jaap Arriens/NurPhoto via Getty Images

Satellite radio provider Sirius XM’s announcement yesterday that it will acquire streaming radio service Pandora for $3.5 billion, in a long-rumored transaction, represents a significant change in the digital music landscape. The deal reflects two trends: that on-demand music services like Spotify and Apple Music are now dominating the market, and that freemium is a powerful revenue model. SiriusXM is hoping that synergies from the deal will help it withstand stiff and growing competition.

Both Sirius XM and Pandora offer a type of digital music service that industry insiders call “non-interactive streaming” — meaning that users can choose a station or channel but not the specific music they hear. This category of services grew fast until about 2014 when growth started to taper off. The latest RIAA revenue figures for the first half of this year show 13% growth from the first half of last year. That’s slightly better than overall music industry growth (10%) but far behind the 36% revenue growth that paid on-demand services are enjoying.

SiriusXM and Pandora are still very popular: SiriusXM has over 32 million subscribers (all paying), while Pandora has more than 70 million active users (mostly free). That’s down from a peak of over 81 million in 2014. That compares to Spotify’s 83 million paying subscribers, though Spotify operates in 65 countries while Pandora only operates in the U.S.

One reason why SiriusXM and Pandora are consolidating is that they are facing competition from two sides. On one side, the interactive streaming services all have features for listening to programmed music, including Spotify’s Weekly Playlist, Deezer’s Flow, and Apple Music’s large selection of expert-curated playlists in addition to playlists published by individual users. These services all have the thumbs-up, thumbs-down and skip feedback features that Pandora made popular.

On the other side, both SiriusXM and Pandora also face resilient competition from broadcast AM/FM radio and streams of individual AM/FM stations. The latter are available through aggregators such as iHeartRadio and TuneIn, but people are still loyal to individual stations. Jacobs Media’s annual TechSurvey tracks radio listener behavior; this year’s survey shows more respondents (23%) listening to individual AM/FM station streams than to Pandora (17%). 84% of respondents also agreed or strongly agreed that “[o]ne of radio’s primary advantages is its local feel.”

Both Pandora and iHeartRadio have on-demand services (Pandora Premium and iHeartRadio All Access), but neither has many subscribers. Essentially, Pandora and SiriusXM are the two largest “pure play” digital radio providers, and this week’s merger consolidates them against these two faces of competition. (And SiriusXM is itself a consolidation: it is the result of the merger of two satellite radio providers, Sirius and XM, in 2007.)

The other strategic reason why it makes sense for SiriusXM to acquire Pandora is that it gives the company a free internet gateway to its paid service that is not only very popular already but also has much lower customer acquisition costs. SiriusXM’s primary market is automotive: it works with automakers to install satellite radio receiver electronics in vehicles and offers free trial periods to new car buyers. This costs the company tens of millions of dollars a year, and many trial users don’t convert to paid subscriptions.

With Pandora, SiriusXM will have a huge built-in user base to which it can promote paid satellite radio subscriptions at much lower customer acquisition cost. SiriusXM’s advantages — beyond no mobile data charges and service in areas where there’s no internet connection — include exclusive content such as live major-league sports, Howard Stern, celebrity DJs, and artist-dedicated music channels; the latter aren’t allowed on Internet radio under the rules that define “non-interactive” streaming. SiriusXM has made its programming available over the internet and mobile apps for years, but it hasn’t put much effort into marketing them.

Another area where the merger represents industry consolidation lies within the arcane processes for determining royalties that digital music services pay record labels, artists, music publishers, and songwriters. Digital radio services pay record labels royalties that are set by law in two separate government-run processes: one for internet radio, the other for satellite radio. Both take place every five years before administrative law judges at the U.S. Copyright Office. Although many services pay Internet radio royalties, Pandora has been the primary representative to the so-called “webcaster” rate-setting proceedings, and although the satellite radio proceedings also affect music services for pay TV (like Music Choice), SiriusXM is the prime mover in those proceedings. The merger means that a single company will dominate both royalty-setting proceedings. (Other such proceedings exist for music file downloads and on-demand streaming, plus other processes that involve music publishers instead of record labels.)

Still, there are challenges ahead for the combined SiriusXM/Pandora entity (“Pandirius”?). It may be difficult for SiriusXM to differentiate its paid-subscription internet content from Pandora’s free service and even Pandora’s $5/month ad-free service. And interactive streaming services — which also offer Internet radio and downloads — are increasingly dominating the entire digital music market; they now account for almost two-thirds (64%) of digital revenue and over half (55%) of the total market.

Digital music has been around long enough to see the eventual demise of once-promising business models. Fixed-playlist internet radio (Live365, AOL Radio, MSN Radio) is all but dead now, and even downloads (iTunes) are falling to less than a third of their 2012 peak. The biggest loser is CDs, down almost 50% from last year and on track to generate less revenue than vinyl by the end of 2018. We should expect more changes and consolidations in the world of digital radio before SiriusXM and Pandora are done.

 

Will SiriusXM and Pandora Sound Better as a Duet?

The music industry has long featured surprising team-ups — former Police frontman Sting and the perpetually “boombastic” reggae artist Shaggy put out an album together this year, for example. But Monday, that duo was knocked out of the running for most interesting musical pairing of 2018 by news that Sirius XM (NASDAQ:SIRI) was purchasing Pandora for $3.5 billion in stock.

In this segment from the Market Foolery podcast, host Mac Greer and senior analyst Matt Argersinger discuss the deal, which had long been seen as a possibility, given that the satellite radio business already owned a 15% share of the music streamer. Sirius shares sank on the news, but there’s reason to believe that the post-merger whole really will be greater than the sum of its parts.

A full transcript follows the video.

This video was recorded on Sept. 24, 2018.

Mac Greer: Let’s begin with the big deal of the day: Sirius XM is buying Pandora in a $3.5 billion all stock deal. Sirius XM already owned 15% of Pandora. They’re just buying up the rest. Shareholders, not too fired up. Sirius XM shares down around 8% at the time of our taping. Now, you’re a Pandora shareholder. How are you feeling?

Matt Argersinger: I don’t know how I’m supposed to feel, Mac. [laughs] It’s been a long, tough several years for Pandora. I’ve been a shareholder for several years now. You kind of knew the potential for this was real just because Sirius XM had the minority stake. There was always talk about them buying up the rest and merging the companies. As a Pandora shareholder, I feel like this is just the end of a sad story. At least I have an end to it now.

Greer: It’s a sad song, if it were a song.

Argersinger: Right. And the question is, since it’s an all stock deal, how excited am I about owning Sirius XM shares? I guess I’m somewhat more excited, if I’m a Pandora shareholder going into Sirius XM. Sirius XM has 36 million paid subscribers. It’s a pretty successful business. We talked about before the show, a business that was really close to death. What did it trade for?

Greer: It got down to around $0.11 in 2009. It was a penny stock, right?

Argersinger: It was the very definition of a penny stock. And it was loaded down with debt. But it’s come back and it’s very successful. One of the reasons is because it has those long-standing relationships with the car manufacturers. Generally, if you buy or rent a car, these days, you have the option of getting Sirius XM. And it’s proving to be a very popular option. You get it for free for the first trial period, and then a lot of users are converting to it. They like it. I like it. I actually have Sirius XM on one of my cars.

You have the 36 million paid subscribers for Sirius. Then, you have 70 million monthly active users for Pandora. I think the idea is, for Sirius, if we can get a good portion of those 70 million active users — now, I know Pandora already has six million paying subscribers. But I think what they’re really going after is how many of those active users that are just listening to Pandora for free with ads, how many can we convert to a paid subscription in a combined Sirius XM-Pandora app?

I think they think, given the amount of library that we have in Pandora, but then combining it with Sirius, which has, of course, sports and comedy and live events and music, it could be a pretty compelling product. It might compete with the likes of Spotify, Apple, Amazon, some of those massive platforms. They’re obviously big competitive threats.

Greer: Let’s talk about that a bit more. You mentioned the stock, let’s round that out. Sirius XM shares trade for north of $6 now. So, $0.11 in 2009, to north of $6. I remember talking to our very own Steve Broido, who bought the shares of Sirius XM when they were a penny stock. I remember thinking, “That’s crazy!” And typically, normally, it is. Right? Most penny stocks go to zero.

Argersinger: 99 out of 100.

Greer: So this is the exception to the rule.

Argersinger: Very big exception.

Greer: But I think when you look back at Sirius XM, one clear differentiator in terms of their programming, Howard Stern. I think you could very much make the argument that Howard Stern single-handedly saved this company.

Argersinger: Yes. And they paid him hundreds of million dollars to do it.

Greer: And it was a great investment, right?

Argersinger: Oh, yeah, it was.

Greer: But Howard is going to retire at some point. Obviously, they’ll have that content for a certain number of years, and they can replay that content just like the replay Casey Kasem. I listen to the top 40 from the 70s, that’s my guilty pleasure on weekends. But going forward, if Howard’s not in the picture, what is Sirius XM’s special sauce when they’re competing with the likes of an Apple or a Spotify?

Argersinger: Well, it’s going to be tough. I think the deal here is, Sirius and Pandora face tremendous royalty costs for artists, for labels, to comedians, and things like that. If you scale that out — in other words, you combine these two fairly rich libraries of content — and you really streamline your costs, because now you’re spreading your costs over a much larger subscriber base, I think they can have a pretty compelling offer. Especially when you link it to the cars or people who are on the go where radio is just not a great option. It can be really compelling option. So now, if I combine that with my Pandora music, it’s something I think a lot of users are willing to pay for. Really, to make this deal work, you don’t need a huge percentage of that 70 million active user base of Pandora to convert over before it starts looking like a good deal.

 

SiriusXM’s Pandora Deal Consolidates Digital Radio Amid Increasing Competition

Jaap Arriens/NurPhoto via Getty Images

Satellite radio provider Sirius XM’s announcement yesterday that it will acquire streaming radio service Pandora for $3.5 billion, in a long-rumored transaction, represents a significant change in the digital music landscape. The deal reflects two trends: that on-demand music services like Spotify and Apple Music are now dominating the market, and that freemium is a powerful revenue model. SiriusXM is hoping that synergies from the deal will help it withstand stiff and growing competition.

Both Sirius XM and Pandora offer a type of digital music service that industry insiders call “non-interactive streaming” — meaning that users can choose a station or channel but not the specific music they hear. This category of services grew fast until about 2014 when growth started to taper off. The latest RIAA revenue figures for the first half of this year show 13% growth from the first half of last year. That’s slightly better than overall music industry growth (10%) but far behind the 36% revenue growth that paid on-demand services are enjoying.

SiriusXM and Pandora are still very popular: SiriusXM has over 32 million subscribers (all paying), while Pandora has more than 70 million active users (mostly free). That’s down from a peak of over 81 million in 2014. That compares to Spotify’s 83 million paying subscribers, though Spotify operates in 65 countries while Pandora only operates in the U.S.

One reason why SiriusXM and Pandora are consolidating is that they are facing competition from two sides. On one side, the interactive streaming services all have features for listening to programmed music, including Spotify’s Weekly Playlist, Deezer’s Flow, and Apple Music’s large selection of expert-curated playlists in addition to playlists published by individual users. These services all have the thumbs-up, thumbs-down and skip feedback features that Pandora made popular.

On the other side, both SiriusXM and Pandora also face resilient competition from broadcast AM/FM radio and streams of individual AM/FM stations. The latter are available through aggregators such as iHeartRadio and TuneIn, but people are still loyal to individual stations. Jacobs Media’s annual TechSurvey tracks radio listener behavior; this year’s survey shows more respondents (23%) listening to individual AM/FM station streams than to Pandora (17%). 84% of respondents also agreed or strongly agreed that “[o]ne of radio’s primary advantages is its local feel.”

Both Pandora and iHeartRadio have on-demand services (Pandora Premium and iHeartRadio All Access), but neither has many subscribers. Essentially, Pandora and SiriusXM are the two largest “pure play” digital radio providers, and this week’s merger consolidates them against these two faces of competition. (And SiriusXM is itself a consolidation: it is the result of the merger of two satellite radio providers, Sirius and XM, in 2007.)

The other strategic reason why it makes sense for SiriusXM to acquire Pandora is that it gives the company a free internet gateway to its paid service that is not only very popular already but also has much lower customer acquisition costs. SiriusXM’s primary market is automotive: it works with automakers to install satellite radio receiver electronics in vehicles and offers free trial periods to new car buyers. This costs the company tens of millions of dollars a year, and many trial users don’t convert to paid subscriptions.

With Pandora, SiriusXM will have a huge built-in user base to which it can promote paid satellite radio subscriptions at much lower customer acquisition cost. SiriusXM’s advantages — beyond no mobile data charges and service in areas where there’s no internet connection — include exclusive content such as live major-league sports, Howard Stern, celebrity DJs, and artist-dedicated music channels; the latter aren’t allowed on Internet radio under the rules that define “non-interactive” streaming. SiriusXM has made its programming available over the internet and mobile apps for years, but it hasn’t put much effort into marketing them.

Another area where the merger represents industry consolidation lies within the arcane processes for determining royalties that digital music services pay record labels, artists, music publishers, and songwriters. Digital radio services pay record labels royalties that are set by law in two separate government-run processes: one for internet radio, the other for satellite radio. Both take place every five years before administrative law judges at the U.S. Copyright Office. Although many services pay Internet radio royalties, Pandora has been the primary representative to the so-called “webcaster” rate-setting proceedings, and although the satellite radio proceedings also affect music services for pay TV (like Music Choice), SiriusXM is the prime mover in those proceedings. The merger means that a single company will dominate both royalty-setting proceedings. (Other such proceedings exist for music file downloads and on-demand streaming, plus other processes that involve music publishers instead of record labels.)

Still, there are challenges ahead for the combined SiriusXM/Pandora entity (“Pandirius”?). It may be difficult for SiriusXM to differentiate its paid-subscription internet content from Pandora’s free service and even Pandora’s $5/month ad-free service. And interactive streaming services — which also offer Internet radio and downloads — are increasingly dominating the entire digital music market; they now account for almost two-thirds (64%) of digital revenue and over half (55%) of the total market.

Digital music has been around long enough to see the eventual demise of once-promising business models. Fixed-playlist internet radio (Live365, AOL Radio, MSN Radio) is all but dead now, and even downloads (iTunes) are falling to less than a third of their 2012 peak. The biggest loser is CDs, down almost 50% from last year and on track to generate less revenue than vinyl by the end of 2018. We should expect more changes and consolidations in the world of digital radio before SiriusXM and Pandora are done.

 

 

SiriusXM: Is Pandora a Good Acquisition?

– By Nicholas Kitonyi

SiriusXM Holdings Inc. (SIRI), t he world’s largest satellite radio company, announced Monday it is acquiring Pandora Media Inc. (NYSE:P) for $3.5 billion.

Since the announcement, analysts have been running the numbers to determine the company’s premium valuation. Pandora has struggled to match the performance of its early days as a public company, which saw its stock price nearly quadruple between November 2012 and March 2014.

Pandora’s stock has rallied 125% since bottoming in January, but, at just under $10 per share, it remains way off its 2014 highs of about $38 per share. At the current price, the market values the company at roughtly $2.5 billion, which means SiriusXM will be paying a premium of 40%.

Pandora’s downfall started in 2015 when Apple Inc. (AAPL) announced the launch of Apple Music. The company’s top-line growth has since decelerated to the low single-digit level while the net loss has continued to widen.

So, in general, it would be correct to infer that Pandora was in trouble before SiriusXM came knocking. From a sum-of-the-parts perspective, this deal probably won’t make sense to most investors. Therefore, the company likely has a plan that will generate synergies while it integrates Pandora into its business.

Pandora stands to benefit from SiriusXM’s scale and financial resources while simultaneously leveraging on the satellite radio service’s industry expertise. On the other hand, SiriusXM will gain more traction on mobile devices by leveraging Pandora’s strength in this area. Pandora could also help SiriusXM enhance its digital presence and leverage its advertising capabilities.

During the conference call, management explained that merging the two technologies could take as long as six years.

While Pandora may only be bringing in just over $1.5 billion in revenue this year, SiriusXM will be looking to utilize some of its licensed and acquired technologies to improve its position in the audio entertainment industry. Pandora will also be bringing AdsWizz with it. AdsWizz provides programmatic audio advertising to advertisers and publishers, giving SiriusXM an interesting revenue stream to augment its subscription-based sales.

SiriusXM attracts potential customers with a trial period, after which some users subscribe to the premium service while others opt for alternatives. Those alternatives include Pandora, Spotify Technology SA (SPOT) and Apple Music, among others.

There are also reports that SiriusXM’s parent Liberty Media Corp, which owns a sizeable stake in Live Nation Entertainment Inc. (LYV), could help the company acquire the Beverly Hills-based events promoter and entertainment company in an attempt to form what could be the world’s largest audio entertainment company.

With Pandora already on board, analysts have pointed out that adding Live Nation to the portfolio could be what the company needs to complete the puzzle. Reports also indicate that Liberty Media and SiriusXM are trying to acquire a stake in iHeart Media, which is currently trying to maneuver through bankruptcy. It owns iHeartRadio, which is a free broadcast and internet radio platform headquartered in New York City.

Since Liberty Media owns a sizeable chunk of iHeart Media’s debt, a takeover could happen, but this is still premature. Nonetheless, SiriusXM looks set to challenge the likes of Apple Music and Spotify as it continues to expand its addressable market while introducing new revenue streams. Buying Pandora could be just the beginning of a long string of acquisitions.

Disclosure: I have no positions in the stocks mentioned in the article.

This article first appeared on GuruFocus.

Why Sirius XM Holdings Stock Fell 11% Last Month

What happenedShares of Sirius XM Holdings (NASDAQ: SIRI) took a spill in September as investors gave a thumbs-down to its acquisition of Pandora Media (NYSE: P). According to data from S&P Global Market Intelligence, shares of the satellite radio service finished last month down 11%. As you can see from the chart below, most of the sell-off came as it announced its takeover of Pandora toward the end of the month.

SIRI Chart© Provided by Fool SIRI ChartSIRI data by YCharts.

So whatIn a deal that wasn’t a total surprise (as Sirius had taken a minority stake in Pandora last year), the satellite-radio provider said it would take over the internet-radio specialist in an all-stock transaction valuing Pandora at $3.5 billion. Sirius said that the transaction will create the world’s largest audio entertainment company. And it touted cross-promotional opportunities that will allow Sirius to leverage Pandora’s ad network and give Pandora access to Sirius’ exclusive content and relationships with auto manufacturers.

Comedian Pete Holmes, on SiriusXM.© SiriusXM Comedian Pete Holmes, on SiriusXM.SiriusXM CEO Jim Meyer said: “We have long respected Pandora and their team for their popular consumer offering that has attracted a massive audience, and have been impressed by Pandora’s strategic progress and stronger execution. We believe there are significant opportunities to create value for both companies’ stockholders by combining our complementary businesses.”

But investors seemed to disagree, as the stock sold off gradually on the news, closing down 10% on Sept. 24. That response seems to indicate they think SiriusXM is overpaying in the deal.

Now whatPandora shareholders will get 1.44 shares of SiriusXM for every share they own, which was equal to $10.14, or 13.8% over its 30-day moving average at the time the deal was announced. The tie-up seems to make sense, especially as both companies face a rising challenge from Apple Music and Spotify. Though the market has expressed its distaste for the combination, Sirius should benefit in the long run.

The deal includes a “go shop” provision, meaning Pandora can solicit other offers, but no other bidders have since come forward publicly. The sale is awaiting approval from Pandora shareholders and is expected to close in the first quarter of next year.

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Automatic, a SiriusXM Company, Introduces Next Generation Connected Vehicle Service Through Auto Dealer-Focused Program

Automatic offers the only plug-in adapter available through dealerships with a free trial subscription; New app and device transforms almost any vehicle into a connected vehicle at point of sale

Automatic Dealer Program enables dealers to offer their customers three free years of Crash Alert and Connected Maintenance services, as well as six free months of premium services such as roadside assistance

AT&T’s nationwide LTE-M connectivity will support Automatic’s service

NEW YORK, Oct. 8, 2018 /PRNewswire/ — Automatic, a SiriusXM company that brings the power of connectivity to almost any car on the road, today announced the launch of the Automatic Dealer Program, an all-new service bundle that automotive dealers will provide to consumers with their new and pre-owned vehicle purchases to enhance their ownership experience.

With Automatic’s new app and easy-to-install adapter, most vehicles, model year 1996 or later, can become connected. Automatic makes it easy for auto dealers and consumers to add connectivity to their vehicles at the time of sale.  It is the first and only aftermarket device available through dealerships with a free trial subscription.

The Automatic Dealer Program enables dealers to offer consenting customers a trial subscription that includes three free years of Automatic’s Crash Alert and Connected Maintenance services, as well as six free months of premium services, such as roadside assistance.  This offering delivers connected vehicle services for a net cost to the dealer as low as $40/vehicle. This cost includes the device and trial subscription.

Automatic delivers benefits to both customers and auto dealers. In addition to the important safety and convenience features, drivers will receive service alerts and recall notifications for their connected vehicle. Dealers, at no additional cost to them, can be notified when their customers are due for service and will have the ability to invite those customers back to their dealership for maintenance or repairs.

Consumers with Automatic get:

  • Crash Alert: Detects when a serious collision occurs and enables responders to contact the driver, send emergency services, and contact a driver’s emergency contacts.
  • Roadside assistance: Sends towing and roadside services to a driver’s location when help is needed.
  • Real-time vehicle location monitoring and sharing: Shows where car is parked in a crowded lot, and can keep a driver connected with family while out on the road.
  • Vehicle health and performance monitoring: Gain insights on driving performance and identify issues when check engine light is on.
  • Recall notifications and service reminders: Receive timely recall notifications and service reminders; book service appointments with a dealer with a few simple clicks.
  • Integration with smart home devices: Open garage door, adjust thermostat, and turn on house lights on your way to or from home.

Dealers working with Automatic get:

  • Added value for dealer lots: Automatic transforms most cars on the lot into connected vehicles, adding value to dealers’ inventory with the ability to pass along the benefit of Automatic’s safety and convenience features.
  • 6-month free premium subscription offers: At the time of sale, dealers can offer customers six months of Automatic’s premium subscription features.
  • Connected Maintenance: The Automatic app creates a streamlined connection between the dealer and its customers. Important service reminders, recall notifications and more are sent directly to a customer’s phone, and those customers can use the app to book service appointments with the dealer that sold them their vehicles.
  • Long term retention: Dealers can offer their customers free access to important features, including Crash Alert and Connected Maintenance, for three years, a benefit not only for the consumer but also for the dealer, by creating a long-term relationship between the buyer and seller.

“This Automatic service introduction benefits from the combined resources and capabilities of Automatic and SiriusXM in the area of vehicle connectivity and product development to create a killer offering for dealers and their customers,” said Joe Verbrugge, EVP & GM, Emerging Business for SiriusXM. “The Automatic platform delivers safety and convenience services for consumers that truly enhance the vehicle ownership experience, and the Automatic Dealer Program gives dealers the ability to provide these benefits to their customers, stay connected to those driving off their lot, and increase loyalty and future service lane traffic.”

“Automatic’s service platform offers a major technology boost to just about any vehicle. This enhances the safety and convenience for today’s drivers,” said Chris Penrose, President of Internet of Things Solutions at AT&T. “Through our nationwide LTE-M network, our work with Automatic and SiriusXM will bring the benefits of connectivity to even more cars and trucks across the U.S.”

For more information, and to enroll in the Automatic Dealer Program, visit https://automaticdealerprogram.com/.

All Automatic subscriptions, including trial subscriptions, are governed by the terms of the Automatic Customer Agreement. Consumers can access the Automatic Customer Agreement at https://automatic.com/legal2018#customer.  Please see the Customer Agreement for complete terms and how to cancel.

Story Continues

The Automatic device collects detailed information about each vehicle’s geolocation, use, operation, performance and maintenance status in order to operate, maintain, and provide the features and functionalities of the Automatic Service.

About Automatic

Automatic Labs Inc., a SiriusXM company, turns almost any car into a connected car. By pairing Automatic’s app and in-car adapter, drivers are able to enhance their driving experience with a host of connected services. Automatic helps customers drive safer and smarter with applications that diagnose engine trouble, detect accidents, send emergency responses when needed, and save money. Developers can use the Automatic platform to build services and applications that use driving data with interoperable access to cars on the road. Automatic is headquartered in San Francisco. For more information, visit www.automatic.com.

About SiriusXM

Sirius XM Holdings Inc. (SIRI) is the world’s largest radio company measured by revenue and has approximately 33.5 million subscribers. SiriusXM creates and offers commercial-free music; premier sports talk and live events; comedy; news; exclusive talk and entertainment, and a wide-range of Latin music, sports and talk programming. SiriusXM is available in vehicles from every major car company and on smartphones and other connected devices as well as online at siriusxm.com. SiriusXM radios and accessories are available from retailers nationwide and online at SiriusXM. SiriusXM also provides premium traffic, weather, data and information services for subscribers through SiriusXM Traffic™, SiriusXM Travel Link, NavTraffic®, NavWeather™. SiriusXM delivers weather, data and information services to aircraft and boats through SiriusXM Aviation™ and SiriusXM Marine™. In addition, SiriusXM Music for Business provides commercial-free music to a variety of businesses. SiriusXM holds a minority interest in SiriusXM Canada which has approximately 2.6 million subscribers. SiriusXM is also a leading provider of connected vehicles services, giving customers access to a suite of safety, security, and convenience services including automatic crash notification, stolen vehicle recovery assistance, enhanced roadside assistance and turn-by-turn navigation.

To download SiriusXM logos and artwork, visit http://www.siriusxm.com/LogosAndPhotos.

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.

The following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: our substantial competition, which is likely to increase over time; our ability to attract and retain subscribers, which is uncertain; interference to our service from wireless operations; consumer protection laws and their enforcement; unfavorable outcomes of pending or future litigation; the market for music rights, which is changing and subject to uncertainties; our dependence upon the auto industry; general economic conditions; the security of the personal information about our customers; existing or future government laws and regulations could harm our business; failure of our satellites would significantly damage our business; the interruption or failure of our information technology and communications systems; our failure to realize benefits of acquisitions or other strategic initiatives; rapid technological and industry changes; failure of third parties to perform; our failure to comply with FCC requirements; modifications to our business plan; our indebtedness; our principal stockholder has significant influence over our affairs and over actions requiring stockholder approval and its interests may differ from interests of other holders of our common stock; impairment of our business by third-party intellectual property rights; and changes to our dividend policies which could occur at any time. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our Annual Report on Form 10-K for the year ended December 31, 2017, which is filed with the Securities and Exchange Commission (the “SEC”) and available at the SEC’s Internet site (http://www.sec.gov). The information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication.

Source: SiriusXM

Media contacts:Andrew FitzPatrick, SiriusXM, Andrew.FitzPatrick@SiriusXM.com Kevin Bruns, SiriusXM, Kevin.Bruns@SiriusXM.com

Automatic’s low profile, easy-to-install adapter transforms almost any vehicle into a connected vehicle.

MoreThe Automatic app creates a streamlined connection between the dealer and its customers. Important service reminders, recall notifications and more are sent directly to a customer’s phone, and those customers can use the app to book service appointments with the dealer that sold them their vehicles.

More

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SiriusXM Increases Quarterly Cash Dividend By 10%

NEW YORK, Oct. 9, 2018 /PRNewswire/ — SiriusXM today announced that its Board of Directors declared a quarterly cash dividend of $0.0121 per share of common stock, reflecting an increase of 10% over the previous quarter’s dividend. This regular quarterly dividend is payable in cash on November 30, 2018 to stockholders of record at the close of business on November 9, 2018.

SiriusXM first initiated a regular quarterly dividend in November 2016 at $0.01 per share per quarter, and the company has now increased this dividend by 10% in each of the past two years.

About SiriusXM

Sirius XM Holdings Inc. SIRI, -0.24% is the world’s largest radio company measured by revenue and has approximately 33.5 million subscribers. SiriusXM creates and offers commercial-free music; premier sports talk and live events; comedy; news; exclusive talk and entertainment, and a wide-range of Latin music, sports and talk programming. SiriusXM is available in vehicles from every major car company and on smartphones and other connected devices as well as online at siriusxm.com. SiriusXM radios and accessories are available from retailers nationwide and online at SiriusXM. SiriusXM also provides premium traffic, weather, data and information services for subscribers through SiriusXM Traffic™, SiriusXM Travel Link, NavTraffic®, NavWeather™. SiriusXM delivers weather, data and information services to aircraft and boats through SiriusXM Aviation™ and SiriusXM Marine™. In addition, SiriusXM Music for Business provides commercial-free music to a variety of businesses. SiriusXM holds a minority interest in SiriusXM Canada which has approximately 2.6 million subscribers. SiriusXM is also a leading provider of connected vehicles services, giving customers access to a suite of safety, security, and convenience services including automatic crash notification, stolen vehicle recovery assistance, enhanced roadside assistance and turn-by-turn navigation.

To download SiriusXM logos and artwork, visit http://www.siriusxm.com/LogosAndPhotos.

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. SiriusXM is providing non-GAAP information on a prospective basis that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends.  We believe investors find these Non-GAAP financial measures useful in evaluating our core trends because they provide a direct view of our underlying contractual costs. This information should be viewed in addition to, and not as an alternative for or superior to, our results prepared in accordance with GAAP.  In addition, SiriusXM’s Non-GAAP financial measures may not be comparable to similarly-titled measures by other companies. SiriusXM does not provide a non-GAAP reconciliation for Adjusted EBITDA guidance to Net income or Free cash flow guidance to Net cash provided by operating activities because it does not provide guidance for the reconciling items between adjusted EBITDA to Net income, which includes the provision for income taxes, interest expense and other income, nor does the Company provide guidance for the reconciling items between Free cash flow to Net cash provided by operating activities, which includes additions to property and equipment.  As items that impact Net income and Net cash provided by operating activities are out of the Company’s control and/or cannot be reasonably predicted, the Company is unable to provide such guidance as the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. Accordingly, a reconciliation to Net income and Net cash provided by operating activities is not available without unreasonable effort.

The following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: our substantial competition, which is likely to increase over time; our ability to retain subscribers or increase the number of subscribers is uncertain; our ability to profitably attract and retain subscribers as our marketing efforts reach more price-sensitive consumers is uncertain; failing to protect the security of the personal information about our customers; interference to our service from wireless operations; we engage in substantial marketing efforts and the continued effectiveness of those efforts are an important part of our business; consumer protection laws and their enforcement; our failure to realize benefits of acquisitions or other strategic initiatives; unfavorable outcomes of pending or future litigation; the market for music rights, which is changing and subject to uncertainties; our dependence upon the auto industry; general economic conditions; existing or future government laws and regulations could harm our business; failure of our satellites would significantly damage our business; the interruption or failure of our information technology and communications systems; rapid technological and industry changes; failure of third parties to perform; our failure to comply with FCC requirements; modifications to our business plan; our indebtedness; our studios, terrestrial repeater networks, satellite uplink facilities or other ground facilities could be damaged by natural catastrophes or terrorist activities; our principal stockholder has significant influence over our affairs and over actions requiring stockholder approval and its interests may differ from interests of other holders of our common stock; we are a “controlled company” within the meaning of the NASDAQ listing rules; impairment of our business by third-party intellectual property rights; and changes to our dividend policies which could occur at any time. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our Annual Report on Form 10-K for the year ended December 31, 2017, which is filed with the Securities and Exchange Commission (the “SEC”) and available at the SEC’s Internet site (http://www.sec.gov). The information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication.

Source: SiriusXM

Investor Relations contact:

Hooper Stevens 212-901-6718 hooper.stevens@siriusxm.com

Chris Leal 212-584-5236 Chris.leal@siriusxm.com

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SOURCE Sirius XM Holdings Inc.

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