Sirius XM Holdings Inc (Nasdaq: SIRI) announced on September 24 that it will own Pandora Media Inc (NYSE: P) by early next year. The deal will be worth $2.5b. Centerview/Morgan Stanley, along with Bank of America Merrill Lynch, will serve as financial advisers on this deal. Kirkland & Ellis/Sullivan Cromwell will operate as the transaction’s legal advisers. The deal will build on Sirius’ current 15% stake in Pandora. Sirius has agreed to a fixed exchange rate of 1.44 Sirius shares for each Pandora share. This deal also grants Pandora a period during which they can continue to hear offers from other interested companies. Jim Meyer, Sirius CEO, explains that this deal will diversify Sirius’ revenue streams and will increase the company’s technical abilities. This merger will create the world’s largest audio entertainment company with over 100 million subscribers in North America.