Pandora May Be Selling The Company After Stock Plummets

Pandora could be in the preliminary stages of selling up after major stock reductions and net losses.

Pandora is the largest online radio service in the world and one of the biggest music streaming platforms next to Spotify. According to a source speaking to The NY Times Pandora have been in discussions about selling the company after share values have reduced significantly.

Pandora stocks have reportedly plummeted in the past two years from a market value of $7 billion down to $1.8 billion.  According to the report in The Times Pandora’s stock has reduced by 60% just since October. Despite these major reductions any plan for sale of Pandora’s assets is currently just a possibility.

This doesn’t imply that Pandora are failing however as the music streaming service ended 2014 with 81.5 million users and despite dropping to 78 million during 2015 they found themselves ending 2015 with 81.1 millions users. Pandora also acquired Rdio in November before shutting it down to use it’s assets for their own service. This acquisition suggests that Pandora wish to move away from ‘internet radio’ and move towards an on-demand music streaming service that would more directly rival Spotify.

Whether they sell the company, start on-demand streaming or anything else Pandora will have to do something soon as the company reported a net loss for Q4 of 2015. Despite an increase in revenue from $921 million (2014) to $1.16 billion last year the company still reported a loss of $169.7 million probably thanks to expensive music licensing and advertising costs.

It’s not all bad news however as, when the news of a possible sale was announced, Pandora’s stock rose by 8.2 percent. So if they do end up selling the company at least there are clearly interested investors.

Writing about music, listening to music, and occasionally playing music.

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