In a move that’s seen as a path to Internet music streaming — and one that will provide solid financial footing to the popular Internet music service Pandora — SiriusXM is set to invest $480 million in Pandora, Reuters reports.
“While SiriusXM has a strong presence in the auto market, where its channels are offered in most new cars in the United States, it has trailed Pandora and other music providers in mobile and streaming content. The relationship could give Sirius expertise in expanding its listening base outside of the car,” the story reports.
In a statement, SiriusXM Chief Executive Officer Jim Meyer said: “We believe there are future opportunities to accelerate Pandora’s growth and further increase stockholder value.”
Reuters adds: “While the companies did not provide details about how they would work together, Barclays analyst Kannan Venkateshwar said SiriusXM could bundle Pandora services to its customers, similar to how Amazon sells HBO and Showtime subscriptions.”