*By Kavitha Shastry*
Shares of Pandora ($P) soared early Monday after news that satellite radio provider SiriusXM ($SIRI) is buying the company for $3.5 billion.
The all-stock deal represents more than an 11 percent premium to where Pandora shares closed on Friday and brings to an end a long-running will-they-won't-they courtship between the two companies.
Sirius, which reportedly made an offer to acquire Pandora last year but was rebuffed, ultimately invested $480 million in the company, buying preferred stock for a 15 percent stake.
The music streaming service, a pioneer in the industry, has struggled to keep up with competition like Spotify ($SPOT) and Apple Music ($AAPL). In its last earnings report it said it had six million paying subscribers, compared to 83 million for Spotify and an estimated 50 million for Apple.
For Sirius, whose strength is in its car radio business, Pandora represents access to a new user base, albeit a relatively small one.
"This is Sirius recognizing that long term, they need to figure out the internet and this is the best solution," said Rich Greenfield, media and tech analyst at BTIG.
Under CEO Roger Lynch ー who took over the top spot last September, about three months after founder Tim Westergren resigned and just around the time the Sirius investment closed ー Pandora acquired audio adtech company AdsWizz, to deliver more targeted ads and a more personalized experience. The company also teamed up with Snap to allow Snapchat users to share songs seamlessly, even if they didn't subscribe to the same music services.
"We're trying to make \[music\] a lot more social," Lynch said in an interview with Cheddar at the Mobile World Congress earlier this month.
Shares of Pandora fell to an all-time low just over $4 in January, but have risen more than 120 percent since through Friday's close.
For full interview [click here](https://cheddar.com/videos/siriusxm-acquiring-pandora-for-3-5-billion).
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
