SiriusXM In Talks To Purchase Streaming Radio Service Pandora

Pandora built its name as a streaming alternative to traditional radio, but soon, it could be heading into your car. Radio service SiriusXM is in discussions to acquire Pandora, CNBC reports.

CNBC said the two companies have been in fresh discussions over an acquisition but have largely disagreed over Pandora’s value. SiriusXM has been focused on acquiring Pandora for some time, but the companies have yet to come to an agreement. Last summer, SirusXM parent Liberty Media reportedly made an offer to purchase Pandora that valued the company at $3.4 billion, but at the time, the companies couldn’t settle on a final valuation for the deal.

Read: Pandora Premium: New Service Aims To Compete With Spotify, SoundCloud

For SiriusXM, a potential deal could help the company insulate itself from larger trends that show users drifting away from traditional satellite radio options in favor of smartphone-based entertainment options.

Finding a new corporate parent could have similar benefits for Pandora’s bottom line. While the company still draws significant value from its long-running radio services, Pandora has struggled to maintain its market against other streaming competitors like Apple Music and Spotify.

While Pandora previously reported a 6 percent bump in year-over-year revenue to $316 million, the company also saw a decline in active users from 79.4 million to 76.7 million listeners. Pandora also recently reorganized its board and formed an internal committee to hear formal purchase bids, the Street reported.

Pandora’s possible acquisition reflects the continuing contraction among streaming music companies who have to contend with tougher market conditions. Within the past year, smaller music streaming companies have looked to be acquired by larger companies to survive. Among them, Sprint purchased a significant stake in Tidal, and SoundCloud has been a possible acquisition target amid persistent financial troubles.

Read: Spotify To Go Public Via Direct Listing Later This Year, Report Says

Pandora itself acquired one of these smaller also-rans — the radio service bought streaming service Rdio in 2015 and used its assets to launch its own Pandora Premium on-demand streaming service earlier this year.