In a press release today SiriusXM announced their agreement to acquire Pandora which was in the works since May of last year when the two sides couldn't agree to a price.

The SiriusXM Press Release states: "We are excited to announce that SiriusXM is acquiring Pandora to create the world's largest audio entertainment company. Together, we will deliver even more of the best content on radio to our passionate and loyal listeners, and to new listeners, across our two platforms. SiriusXM and Pandora are continuing to provide the content, products and services you expect from us. We will continue to provide updates on our offerings through the same channels as we always have, but are happy to answer some of your questions here."

CNBC adds to this story today by noting that "Although SiriusXM plans to acquire music streaming service Pandora in a $3.5 billion all-stock deal, the agreement does in fact include a 'go-shop' provision where Pandora "may actively solicit, receive, evaluate and potentially enter negotiations with parties that offer alternative proposals following the execution date of the definitive agreement."

Acquiring Pandora would make SiriusXM the world's largest audio entertainment company, with over $7 billion in combined revenue expected in 2018. The deal would bring together SiriusXM's 36 million subscribers in North America and Pandora's more than 70 million monthly active users.

Pandora stock has soared nearly 90 percent during the past year. While the music streaming business is thick with competition — names such as Spotify, Amazon and Apple have their own platforms — Pandora reported a smaller-than-expected earnings loss for its second quarter and announced it had about 6 million premium subscribers.

Evercore ISI analyst Anthony DiClemente said he wouldn't rule out a higher bid for Pandora from a tech giant, but he believes 'Apple and Spotify have had a chance to look at Pandora already.'"

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