Here's Why Pandora (P) Stock Is Soaring Today
Shares of internet radio pioneer Pandora P gained nearly 10% in morning trading Friday after reports surfaced that the company was now open to selling itself to former suitor SiriusXM SIRI. According to CNBC, people familiar with the matter confirmed that SiriusXM is expected to pursue the deal.
Back in July, Pandora rejected an informal $15-per-share takeover offer from SiriusXM and its majority owner, Liberty Media LMCA. Pandora has continued to face pressure to sell itself from activist firm Corvex Management.
Liberty Media’s CEO Greg Maffei has also been open about his desire to do business with Pandora. “We think that the free space, whether it be commercial terrestrial radio, or Pandora, is still a very attractive space,” Maffei told CNBC recently.
Today’s rumors have certainly sent Pandora’s stock soaring, but any potential deal still seems like a long way away. One person cited in CNBC’s report suggested that the deal was still in “the first inning of the process.”
Shares of Pandora closed at $11.48 on Thursday, which means that Liberty’s previous $15-per-share offer still doesn’t seem outrageous. Nevertheless, it will be interesting to see what kind of price tag Pandora is putting on itself.
These types of situations typically depend on whether the two companies are anywhere near each other on pricing. If Pandora is setting its sights too high, the conversation with Liberty and SiriusXM could be over quickly. However, Maffei and his company have expressed a clear interest, which means that we could see something materialize here.
A Pandora sale would also add another wrinkle to the ever-changing music streaming landscape. With Apple’s AAPL Apple Music taking off and Spotify probably set for an IPO in 2017, things are really getting interesting in this sphere.
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