Andrew Flanagan

Satellite radio giant SiriusXM is buying the Oakland, Calif.-based digital radio company Pandora in an all-stock deal valued at $3.5 billion, the companies announced Monday. The deal is expected to close in early 2019.

The merger would create "the world's largest audio entertainment company," SiriusXM CEO James Meyer said in a conference call. The deal would still need to be reviewed by antitrust regulators and shareholders, he added.

Updated 1:04 p.m. ET

The "substantial doubt" that iHeartMedia's corporate leaders expressed around the company's likelihood of surviving another year, mentioned in its quarterly financial report last November, has been put to rest.