For Sale: Pandora
It could be the end of the road for Internet radio and streaming service Pandora, who this week announced it was actively looking for a buyer as part of “strategic alternatives”.
The revelation landed around the same time as Pandora’s latest quarterly results, which revealed that active listeners fell to 76.7 million compared with 79.4 million in the same quarter a year ago. The company ended the quarter with $203 million in cash, down from $243.3 million last year.
According to this statement, Pandora has raised $150m from hedge fund and private equity firm KKR. in advance of seriously seeking a buyer, though it is perhaps difficult to envisage at this stage who in the digital music space would take the company on- Shares of Pandora sunk 3 percent on Monday to $10.40, but rose 4 percent after news of the sale was out there. The stock has tellingly sunk 71 percent since peaking a little more than three years ago.
Outgoing Pandora board member James M. P. Feuille said in the statement: “Having secured a significant financial commitment from KKR to strengthen the Company’s balance sheet. We have positioned the Company to evaluate any potential strategic alternatives, including a sale, in the 30 days before the financing is set to close”.
Pandora recently re-launched as a Premium on-demand streaming service in a bid to compete with the likes of Spotify and Apple Music.
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