The streaming music service Pandora's in trouble and it has been for some time. Reports are that the company actually rejected a total acquisition by the satellite radio company Sirius XM last week and instead settled for a $480 million cash injection instead. This basically ceded control of Pandora to Sirius (not so much in board seats but in influence), so while the reported deal terms limit Sirius from buying more Pandora shares for 18 months as well as preventing it from acquiring more than 31.5 percent of the company without the Pandora board approval, the entity with all the leverage here is Sirius. My prediction is that Sirius will end up with Pandora and covert it totally to Sirius XM online, with the existing Pandora being only one of the channels that it offers. - Bobby Owsinski is the author of 24 books on recording, music, the music business and social media.

Source: Forbes June 11, 2017 13:52 UTC