Tag Archives: SiriusXM

SoundCloud Announced $75M Investment from SiriusXM Holdings Inc.



SoundCloud and SiriusXM Holdings Inc. announced that the leading U.S. audio entertainment company, SiriusXM, has invested $75 million in SoundCloud, the world’s largest open audio platform. SoundCloud will use this additional investment to accelerate its product development and enhance the services that fuel its global community of creators and listeners.

“SoundCloud’s three consecutive years of strong financial performance directly reflect the success of our creator-led growth strategy,” said Kerry Trainor, Chief Executive Officer, SoundCloud. “We have an exciting roadmap focused on deepening the connections between creators and listeners that fuel creator discovery, career growth, and the evolution of music culture on SoundCloud. We’ve built a great relationship with SiriusXM through our highly successful Pandora ad sales agreement, and their investment gives us added capital flexibility to accelerate our vision and take advantage of strategic opportunities as they arise.”

“SoundCloud’s unique platform serves a vital role in today’s music ecosystem where new artists are discovered and build their fan base, and established artists experiment and connect directly with their fans in highly effective ways,” said Jim Meyer, Chief Executive Officer of SiriusXM. “We admire SoundCloud’s loyal and growing audience, its offering for creators, and its reputation and popularity in global music communities. We believe this is another opportunity to continue creating value for SiriusXM stockholders by investing in expanding digital audio platforms.”

The minority investment follows the highly successful ad relationship between SoundCloud and Pandora, a subsidiary of SiriusXM, which started in 2019. The agreement enables advertisers and brands to purchase SoundCloud’s U.S. ad inventory directly through Pandora, leveraging the company’s direct sales capabilities, targeting data, and audio programmatic platform. Together, SoundCloud and Pandora’s combined U.S. audience offering reaches more than 100 million unique listeners, creating the largest digital audio advertising marketplace.

Under the terms of the agreement, SiriusXM has purchased $75 million of securities for a minority investment, and the SoundCloud Board of Directors will expand to include two individuals designated by SiriusXM.


SiriusXM to Acquire Pandora



SiriusXM Holdings and Pandora Media today announced a definitive agreement under which SiriusXM will acquire Pandora in an all-stock transaction valued at approximately $3.5 billion.

The combination of these two companies creates the world’s largest audio entertainment company. The combined company will engage in cross-promotion between SiriusXM’s base of more than 36 million subscribers across North America and 23 million-plus annual trial listeners and Pandora’s more than 70 million monthly active users.

The acquisition will enable leveraging of SiriusXM’s exclusive content and programming with Pandora’s ad-supported and subscription tiers to create unique audio packages while also utilizing SiriusXM’s extensive automotive relationships to drive Pandora’s in-car distribution. The press release mentioned “expanded monetization opportunities through both ad-supported and subscription services in and out of the vehicle.”

The press release says: “Following the completion of the transaction, there will be no immediate change in listener offerings.” I think the key word here is “immediate”. This is not a promise that things will not change.

The acquisition could bring up some issues for people who canceled their SiriusXM subscription because they strongly disagreed with the hiring of Steve Bannon. It may also be problematic for the people pushing SiriusXM to cancel Pearl Jam Radio. People who don’t want anything to do with SiriusXM, but who do want to continue using Pandora, face a moral dilemma.

Now might be a good time to find out if your favorite podcasts that are on SiriusXM or Pandora are available somewhere else. That will make it easier if the podcast disappears after the acquisition is final.