Will Sirius XM Put Pandora Out of Its Misery?

Will Sirius XM Put Pandora Out of Its Misery?

Pandora (NYSE: P) and Sirius XM Radio (NASDAQ: SIRI) seem to be at opposite ends in the eyes of market favor. Shares of Sirius XM hit an 11-year high this summer. Pandora, on the other hand, is hitting all-time lows on Friday after another disappointing quarterly report. 

The irony here is that we're just five months removed from the moment when Sirius XM struck a deal for a minority stake in Pandora. The satellite radio giant made a push to buy all of Pandora last year, only to be rebuffed. It ultimately settled for a convertible preferred stock investment that translates into a 19% piece of Pandora's current outstanding shares or a 16% stake on an as-converted basis. It doesn't have to end there. These two companies are passing ships, but it's never too late for Sirius XM to hook on to Pandora and give it a tow in the right direction. 

Image source: Pandora.

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Source: Fool.com