Is Pandora Considering Selling Itself?
February 12, 2016 at 4:29 AM (PT)
Is PANDORA for sale? Perhaps, reports THE NEW YORK TIMES, writing "The largest Internet radio service has held discussions about selling the company, according to people briefed on the talks. PANDORA is working with MORGAN STANLEY to meet with potential buyers, said the people, who spoke on condition of anonymity. The talks are preliminary and may not lead to a deal, the people said."
FORTUNE.COM reacted to the news, commenting, "Would you like to buy a streaming music service? It has annual revenues of about $1 billion or so, and about 250 million registered users. Unfortunately, this company also happens to be losing about $10 million monthly, and there’s no sign of when the red ink is likely to stop."
The buzz follows yesterday's release of Q4 and full year 2015 financial reports, which showed full year reveue was $1.164 billion, growing 26%, while Q4 revenue was $336.2 million, a rise of 25% over the previous year's period.
So why would PANDORA consider a sale? “It has lots of users but can’t grow revenue quickly enough,” said ROSS SCHOOL OF BUSINESS AT THE UNIVERSITY OF MICHIGAN Professor ERIK GORDON to THE TIMES. “It is another stumbling pioneer.”