Satellite radio service SiriusXM buying streaming music company Pandora

Subscription radio company SiriusXM says it's buying music streaming service Pandora Media Inc. in a deal valued at about $3.5 billion US.

Sirius says this will allow it to expand its service beyond cars and into mobile devices and homes.

Pandora has faced intense pressure from competitors like Spotify and Apple.

Its last quarterly profit was in December 2014.

But a buyout by SiriusXM, which made a $480-million US investment in Pandora in June 2017, maybe the boost the business needs.

The ability to provide a subscription service that gives Pandora customers access to streaming music and satellite radio could help set it apart from its rivals and would likely draw in new customers.

SiriusXM's relationships with automobile companies will open the door for Pandora to have better distribution in that market.

Meanwhile, the deal will help SiriusXM tap into Pandora's mobile strength while giving it the chance to improve in areas such as making personalized listening recommendations.

New York-based SiriusXM Holdings Inc. has more than 36-million subscribers in North America, while Pandora has more than 70-million monthly active users. Pandora is unavailable in Canada.

Pandora stockholders will receive 1.44 newly issued SiriusXM shares for each Pandora share they own.

Pandora also has a "go-shop" period in which it can solicit other offers from third parties.

SiriusXM says both brands will continue to exist, along with their respective products and services.

Both companies' boards have approved the deal, which is expected to close in 2019's first quarter.

It still needs approval from Pandora shareholders.

At one point the CBC owned a pieceof Sirius XM's Canadian operations, but since a restructuring in May 2017 the CBCno longer has any ownership stake in the company. It is, however, still a programming partner.