SiriusXM in Talks to Buy Pandora

pandora

SiriusXM and Pandora have had a bit of an on-again, off-again relationship over the past year. According to reports from CNBC and the New York Post, the two companies seem to have re-ignited their original spark, and are talking again.

Liberty Media, SiriusXM’s parent company, has been discussing the prospect of purchasing Pandora since last year when they reportedly made a $3.4 million dollar bid for the music streaming service. The bid was declined by Pandora’s board because of a disagreement about Pandora’s valuation. Some things never change, as the same argument has reared its ugly head again with the latest talks.

Should the satellite radio service acquire Pandora, it could prove to be a rather effective symbiotic relationship. As much as Pandora needs the cash, SiriusXM needs a relevant streaming service to stay competitive in today’s music consumption environment. Who needs the radio when you can just plug you phone into your car and listen to Spotify? Even with talk radio and sports, which SiriusXM can still provide via satellite, Android Auto and Apple CarPlay are becoming increasingly more threatening as alternatives.

For the time being, the two companies seem to be at an impasse. SiriusXM wants Pandora for a reduced cost, but Pandora is unwilling to budge. But, while they bicker, their competitors continue to grow beyond them.

[via The Verge]

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