Pandora has completed its acquisition of AdsWizz
Music streaming company Pandora (P) announced on May 29 that it had completed its acquisition of digital audio and technology company AdsWizz for $145 million. Pandora first announced the deal in March. The streaming company announced today that $66.3 million will be paid in cash, and an additional $5 million will be paid in cash if certain milestones are hit. The company plans to pay the rest in common stock.
Pandora wants to up its competition
The acquisition will help Pandora upgrade its ad capabilities in its competition with Apple Music and Spotify (SPOT). In recent weeks, Pandora has taken steps to do that. Pandora recently launched playlists similar to Spotify’s and announced a $14.99 per month family package similar to deals offered by rivals.
AdsWizz offers dynamic ad insertions and audio formats that allow users to trigger an action while listening to an ad by shaking their smartphone. AdsWizz’s technology can target ads based on user activity. AdsWizz could help Pandora earn more revenue from users of its free ad-based platform, which is important as paid users represent only 7.8% of the company’s total 72.3 million users but generated 32.7% of the company’s first-quarter revenue of $319.2 million.