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SiriusXM buys into Pandora

AP Photo/Richard Drew, file

SiriusXM today agreed to make a $480 million minority investment into Pandora, in a strategic tie-up between the nation's largest satellite radio provider with its largest Internet radio provider. Pandora, whose stock climbed more than 5% on the news in early Friday trading, also said that it will sell its TicketFly unit to privately-held Eventbrite for $200 million.

How we got here: SiriusXM originally offered to buy Pandora last summer for $3.4 billion, but was rebuffed. It then tried again earlier this year at a much lower price ― Pandora currently is valued at just around $2 billion ― and was turned down again. Then Pandora agreed last month to take a $150 million investment from private equity firm KKR. Sirius responded with this $480 million offer for a minority stake, which was accepted. The KKR deal is now dead, although KKR will receive a $22.5 million break-up fee.