Pandora Media Inc (NYSE:P) may be for sale.
Sirius XM Hldgs (NASDAQ:SIRI) could be in the process of acquiring the music streaming service in a bid to expand its offerings. Pandora once was the top music streaming app out there, but the rise of other apps such as Spotify has caused the company’s popularity to slow down.
A source close to the matter noted that the companies could be in the “first inning” of a deal that could benefit both companies. If the technologies from both companies join forces, it could be a profitable venture.
However, Pandora said that the company would be willing to listen to other suitors as well. Liberty Media (NASDAQ:BATRA) offered a deal for the company worth $15 per share back in July, but it was rejected.
Liberty’s CEO noted that the union of Pandora and Sirius XM could help the companies compete against the growing competition being offered by Spotify and others.
“And we talked about how we’d like to find a way to participate,” he said. “I think the streaming business, which Pandora seems to have doubled down on, is a very unattractive business. So there are parts of Pandora that could be attractive. And there’s parts that we’d have questions about.”
P stock is up 11.2% Friday. SIRI shares are down 3.7% Friday. P stock is trading at $12.84 by Friday afternoon at day’s end.