06/09/2017

Pandora Media Inc said on Friday that U.S. satellite radio company Sirius XM Holdings Inc would invest $480 million in the music streaming company.

Under the terms of the agreement, a subsidiary of Sirius XM will buy issued series A convertible preferred stock of Pandora, representing 19 percent of the company's current outstanding shares, according to a joint statement.

The investment from Sirius XM, which comes a month after private equity firm KKR & Co LP agreed to invest $150 million in Pandora, would prevent Sirius from buying additional securities of Pandora for 18 months.

Sirius XM controlled by media mogul John Malone's Liberty Media Corp also agreed not to buy more than 31.5 percent of Pandora, without the approval of its board on completion of the 18-month period.

Reuters reported early on Thursday that Sirius XM was looking to invest in Pandora, citing people familiar with the matter.

The latest investment by Sirius is convertible into common stock at $10.50 per share, a 23.8 percent premium to Pandora's Wednesday close, a day before Reuters reported about the investment.

Pandora also said the new Sirius investment would end its investment agreement with KKR.

Shares of Pandora reversed course and were trading down 2 percent at $8.24, while shares of Sirius XM remained unchanged.

Reuters (Reporting by Aishwarya Venugopal in Bengaluru; Editing by Shounak Dasgupta)