June 15, 2017

Last Friday SiriusXM (NASDAQ: SIRI) announced it was making a $480 million “strategic cash investment” in Pandora (NYSE: P), the struggling internet radio station. According to a press release, a subsidiary of SiriusXM would purchase a total of $480 million in newly-issued Series A convertible preferred stock, with $172.5 million to be purchased at signing and the balance at a second closing. This represents a 19 percent stake of currently outstanding common stock and a 16 percent stake on an as-converted basis. The Series A preferred stock can be converted to common stock at $10.50 per share.