Internet radio company Pandora will pay $22.5 million to private equity firm KKR, in exchange for terminating a $150 million investment agreement that was signed last month. The original breakup fee had been just $15 million, which was designed to let Pandora explore alternatives for 30 days. Today Pandora said that it would accept a $480 million investment from SiriusXM, in lieu of the KKR deal.
Change in plans: Pandora had planned to close its KKR investment by yesterday, but requested an extension due to the interest from SiriusXM (which had twice offered to buy the company outright, but been rebuffed). KKR allowed it, but only if it could renegotiate the breakup fee.