PANDORA IS PREPARING TO SELL
It’s not the first time that Pandora’s viability has been questioned, but rumor has it that the OG music discovery service is working with Morgan Stanley to meet with prospective buyers.
However, it’s a strange time for Pandora to be selling. The company’s market value is down to $1.7 billion, compared to $7 billion just two years ago, and the share price has fallen over 60% since October. And while companies like Spotify are corralling another $500 million in funding, Pandora has had to increase spending to attract more users, and is profiting less from those users. Contributing to the company’s woes are the increase in royalties from 14 to 17 cents for every 100 plays. Even though it’s only a slight increase, that extra three cents multiplied by over 70 million users becomes a big number.
Representatives from both Pandora and Morgan Stanley declined to comment on the matter. We’ll keep you posted on what becomes of the internet radio pioneer.
H/T New York Times