SiriusXM has purchased Pandora for approximately $3.5 billion. The transaction is expected to close in the first quarter of 2019 after approval by Pandora stockholders or any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. SiriusXM wanted to expand beyond the car and into the home; thus the purchase of Pandora fits their vision. The combined company will be able to create new advertising revenue streams from SiriusXM's 36 million customers and Pandora's 70 million monthly active customers which represents the largest digital audio audience in the U.S.. Pursuant to the agreement, the owners of the outstanding shares in Pandora that SiriusXM does not currently own will receive a fixed exchange ratio of 1.44 newly issued SiriusXM shares for each share of Pandora they hold. Based on the 30-day volume-weighted average price of $7.04 per share of SiriusXM common stock, the implied price of Pandora common stock is $10.14 per share, representing a premium of 13.8% over a 30-day volume-weighted average price. The transaction is expected to be tax-free to Pandora stockholders. SiriusXM currently owns convertible preferred stock in Pandora that represents a stake of approximately 15% on an as-converted basis.