Sirius XM Holdings Inc is looking forward to invest in Pandora Media Inc, according to a recently published report by Reuters citing sources with the knowledge of the matter.
The New York-based satellite radio company is discussing a private investment in public equity (PIPE) with Pandora, however the latest talks between the two companies could still collapse, according to the report.
Any collaboration between Sirius XM and Pandora would be a beneficial for the two companies as both have overlapping audience. Sirius XM is making efforts to strengthen its position in mobile and internet space, while the California-based Pandora is trying to become more famous among drivers.
The company’s shares are sold in a private offering in a PIPE deal, contrary to a public secondary offering.
Pandora (NYSE:P) shares declined more than 30 percent during the last year, as the company faces tough competition from Apple Music, Google Play Music, Spotify and Amazon’s Music Unlimited.
Separately, private equity firm KKR & Co LP invested $150 million in Pandora last month. KKR’s deal gave Pandora a 30-day-period to explore alternative deals.