SiriusXM has announced a potential $1 billion impairment charge for Pandora, primarily due to increasing royalty costs and the streaming platform's operating performance.

The announcement came ahead of SiriusXM's Q4 2020 earnings call, causing their stock (SIRI) to decline from $6.37 to $5.94 per share - its lowest value since early January 2021.

Despite this setback, SiriusXM reported strong performance metrics:

• Added 900,000+ net self-pay subscribers
• Reached 30.9 million total subscribers
• Expected to meet or exceed 2020 revenue guidance

2021 projections include:

• 800,000 new net subscriber additions
• Revenue of approximately $8.35 billion
• Free cash flow of about $1.6 billion

Recent business developments:

• Acquired podcasting platform Stitcher for $325 million
• Renewed contract with Howard Stern
• Secured expanded NBA broadcasting rights for live audio coverage
• Became exclusive audio broadcaster for 2021 Masters Tournament

CEO Jennifer Witz remains optimistic about the company's future growth potential, despite Pandora's challenges with royalty costs. The new broadcasting agreements and strategic acquisitions demonstrate SiriusXM's commitment to expanding its content offerings and market presence.

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