— Amazon.com, Inc. (NASDAQ: AMZN) on Thursday said it is buying the popular music streaming service Pandora for $5.7 billion in cash and stock.
Amazon will continue to own a majority stake in Pandora through 2024, according to a news release.
The sale comes as the music streaming company is struggling to survive as the market for streaming services continues to tank.
Pandora has more than 725 million subscribers worldwide.
The purchase of Pandora is the largest acquisition in the company’s history, according an Amazon spokesperson.
“The Pandora acquisition is the culmination of a long-term, long-standing relationship between Amazon and Pandora, which began when Amazon purchased MusicNet in 2007,” the company said.
Pandora has been in decline for years, according the company.
Pandora’s online music service has been a major reason why music consumption has declined.
“Pandora’s decline in popularity has been largely due to the rise of subscription services like Spotify, Apple Music, and Rdio,” the release said.
“Pandora is a great fit for Amazon because it provides an unprecedented level of flexibility for Pandora listeners, and it will continue as the company continues to focus on delivering innovative new products and services,” the spokesperson said.
“We are excited to see what new capabilities Pandora has to offer in the years ahead.”
Pandora was acquired for $2.7 in cash in 2014.
Pandora and Apple are the largest music streaming services in the U.S. and Canada.