Pandora IPO Set At $141 Million
June 2, 2011 at 5:25 PM (PT)
In an update to its S-1 filing with the SEC, PANDORA is expecting to raise up to $141.6 million in its IPO. FORBES.COM reports that the "online radio" entity will offer 15.7 million shares at $7 to $9 per share.
Last week's S-1 filing cited $51 million in revenue for its most recent quarter, which is up 136% from $21.6 million in the year-ago period ending APRIL 30th.
Investors who already own more than 5% of PANDORA include CROSSLINK CAPITAL, WALDEN VENTURE CAPITAL, GREYLOCK PARTNERS, LABRADOR VENTURES, HEARST CORP. and GGV CAPITAL.
Kurt Hanson's Analysis
According to KURT HANSON of ACCURADIO, The $1.3 billion valuation (based on the midpoint of the proposed price range) "Is consistent with the fact that PANDORA's current AQH audience is roughly equal in size to that of a 3.0-share FM radio station in every U.S. market -- with all of those stations having shares that have been growing at the rate of about 100% per year.
"PANDORA's market capitalization at this share price would equal the total of the market caps of such pureplay radio broadcast companies as ENTERCOM ($330 million), CUMULUS ($180 million), SAGA ($150 million), RADIO ONE ($120 million), EMMIS ($40 million) and several others combined," he continued. "Doing some estimates for the approximate values of the radio divisions of larger media companies, I believe this would make PANDORA the nation's fourth-highest-valued radio broadcaster, after SIRIUS XM and CLEAR CHANNEL RADIO and just behind CBS RADIO. If PANDORA's stock price rises after the IPO, it could easily move to third place in that ranking."