Sirius XM has explored an acquisition of Pandora for at least two years. Last year, Sirius floated a $15-per-share offer for Pandora. More recently, the CEO of Liberty Media, Sirius's majority shareholder, said it would buy Pandora for $10 per share. CNBC reported Sirius's final acquisition offer valued Pandora at $8. After all the negotiation, Pandora reached a deal to sell about 20 percent of the business to Sirius for $480 million, valuing the company around $2.4 billion, or just under $10 per share. Plus, Sirius's investment comes with a 6 percent dividend on its preferred shares. Bloomberg entertainment reporter Lucas Shaw tells host Alex Sherman that evidence indicates Sirius got the better of Pandora in its deal negotiations.

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