Sirius XM buys stake in Pandora

NEW YORK — Pandora is raising cash to help it take on Spotify and other streaming music services.

The online music service is selling a 19 percent stake in its business to satellite radio company Sirius XM for $480 million.

Pandora will pay a $22.5 million breakup fee to private equity firm KKR for breaking up a previously agreed $150 million deal.