Simpson Thacher represented SiriusXM (NASDAQ: SIRI) in its announced $480 million strategic cash investment in Pandora (NYSE: P). Under the terms of the agreement, a subsidiary of SiriusXM will purchase an aggregate of $480 million in newly issued Series A convertible preferred stock of Pandora, which will represent 19% of Pandora’s outstanding common stock. The closing contemplated by the agreement is subject to customary closing conditions, including antitrust approval, and is expected to close by the fourth quarter. When the transaction closes, three individuals designated by SiriusXM will be named to the Pandora Board of Directors, including one who will serve as Chairman.
SiriusXM is the world's largest radio company measured by revenue and has approximately 31.6 million subscribers, and is also a leader in providing connected vehicle services.
Pandora is the leading U.S. provider of ad-supported digital radio. With a loyal quarterly audience of nearly 100 million listeners in the U.S., Pandora is the leading player in the burgeoning digital audio advertising market.
The Simpson Thacher team included Eric Swedenburg, Ravi Purushotham, Megan Tweed and Chajin Wu (M&A); Andy Keller and Lia Toback (Capital Markets); Brian Steinhardt and Michael Vernace (Credit); Greg Grogan, Aimee Adler and Monisha Bhayana (Executive Compensation and Employee Benefits); Marcy Geller, Sophie Staples and C.J. Murray (Tax); and Lori Lesser and Marcela Robledo (Intellectual Property). Summer Associate Kyle Schwab also provided valuable assistance.