Published: Thu, June 08, 2017
Money | By Armando Alvarado

Sirius XM in talks to invest in Pandora

Sirius XM in talks to invest in Pandora

Specifically, Pandora said that KKR and it agreed to postpone the deadline to close the transaction to an undisclosed time.

Music streaming company Pandora Media Inc (P.N) said on Thursday it would briefly extend the closing of private equity firm KKR & Co LP's (KKR.N) $150 million investment to explore interest expressed by a strategic investor for a minority investment.

Sirius XM is negotiating a private investment in public equity (PIPE) after talks about Sirius XM acquiring Pandora in its entirety ended unsuccessfully over price disagreements, the sources said on Wednesday. That deal also included adding a KKR official to Pandora's board of directors, and stoked speculation that KKR would press for taking Pandora private, or selling itself.

KKR's agreement gave Pandora a 30-day-period to look for an alternative deal. Pandora declined to comment, while Sirius XM and Liberty Media did not immediately respond to requests for comment.

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Sirius XM's chief financial officer, David Frear, was playing down any M&A rumors at a conference in London earlier this week suggesting the two companies were not a logical fit.

The New York Post first reported that Verizon (VZ) could also potentially invest $100 million in Pandora preferred stock if the company fails to sell by June 8. Pandora will pay dividends to the holders quarterly at an annualized rate of 7.5% if paid in cash or 8% if paid in kind.

Sirius XM had been offering activists shareholders a below-market rate of around $9 per share earlier in the week, while Pandora's major shareholders including Corvex and Matrix were looking for a number at around $11 or $12 dollars per share.

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