With its technology firmly embedded in the dashboard of nearly every new vehicle on the market, SiriusXM has an enviable place in the music business. Now the company is making moves to stake an even larger claim and solidify its dominance.
SiriusXM announced today that it will buy streaming music service Pandora Media for $3.5 billion. It already purchased 19% of the mobile app for $480 million last year, and completion of the all-stock deal would create the world's largest audio entertainment company, which will help the satellite-based platform compete against other personalized streaming music services, such as Apple Music and Spotify.
As more auto manufacturers integrate device mirroring technology such as Apple CarPlay and Android Auto into vehicles, Sirius XM 's in-dash advantage is waning. Users of these telematics apps put on-demand streaming music front-and-center rather than the music and news channels that SiriusXM curates. Buying Pandora would give the entertainment giant prominent real estate in mobile devices and in application-based infotainment systems.