Report: Verizon Eyeing Pandora Bid If SiriusXM Drops Out

Pandora: Multiple Suitors?

VERIZON is eyeing a possible $100 million investment in PANDORA if a sale to SIRIUSXM falls through, according to the NEW YORK POST.  

VERIZON's TIM ARMSTRONG could be a candidate for the PANDORA board under one possible scenario, according to sources, with one insider noting that the radio giant could benefit greatly from VERIZON-owned AOL’s expertise in programmatic, or automated ad serving.

VERIZON CEO LOWELL McADAM is still busy integrating his acquisition of YAHOO with AOL, but the company could be interested in data from PANDORA’s 80 million, mostly young mobile users.

SIRIUSXM has been conducting due diligence on PANDORA for the past few weeks, and is in discussions to buy the company for between $11 and $12 a share.

LIBERTY MEDIA CEO GREGG MAFFEI, negotiating on behalf of SIRIUSXM, could back out or try to negotiate the price down still further.

PANDORA’s stock closed up 1.8% on FRIDAY at $9.30 a share. That’s well under the $15-per-share bid SIRIUSXM made to PANDORA’s board last JULY.

PANDORA has lined up other options. Private equity firm KKR said last month it would invest $150 million in PANDORA in return for preferred shares if the firm had not sold itself within 30 days, a deadline which arrives this THURSDAY.

Sources say PANDORA’s major shareholders, the two activist investors CORVEX and MATRIX, are calling the shots in deal talks.

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