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Pandora Gets $480 Million From Sirius XM

June 12, 2017 | | Comments 0
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Pandora is getting a $480 million investment from Sirius XM and selling its Ticketfly business to Eventbrite for $200 million as the internet-radio pioneer tries to revive its business and find a possible buyer.

The deals will help Oakland, California-based Pandora grapple with widening losses and a tepid outlook for its online music business. The fast growth of Spotify and Apple Music, along with the billions of dollars Amazon.com Inc. and Google are investing in music, has pressured Pandora to expand beyond its roots as an internet radio company and become a streaming service seeking paying subscribers.

Though Pandora has also diversified into ticketing and artist services, investors such as the hedge fund Corvex Management LP have questioned that strategy and urged a possible sale because of losses and a tumbling stock price.

The strategic cash investment by Sirius XM represents a 19 percent stake in Pandora’s common stock, according to a separate statement. Sirius XM will name three people to Pandora’s board, with one serving as chairman. The board will also expand to nine directors.

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