The record label believes "consumer adoption of paid streaming services still has significant potential for growth.”
The quarter also beat the company's expectations for subscriber growth, gross margins and operating profit.
The deal for the music-streaming service "represents an exciting next step in our efforts to expand our reach out of the car even further," SiriusXM says.
The music-streaming service's stock closes 13% above the reference price on its first day of trading.
The music-streaming service warns that "an active, liquid, and orderly trading market" for its shares "may not initially develop or be sustained.”
The music streaming company is said to be considering a direct listing on the NYSE within the year.
The satellite radio leader will invest $480 million in Pandora as the music-streaming service moves into direct competition with Apple Music and Spotify.
Pandora CFO Mike Herring isn’t worried about competing music-streaming services, like Apple's. In fact, he says, he welcomes them.
