|Bid||5.23 x 100|
|Ask||5.55 x 100|
|Day's Range||5.47 - 5.54|
|52 Week Range||4.05 - 5.89|
|PE Ratio (TTM)||32.59|
|Earnings Date||Oct 25, 2017 - Oct 30, 2017|
|Dividend & Yield||0.04 (0.73%)|
|1y Target Est||5.69|
Pandora is sitting on a nice pile of cash, and Wall Street is excited about what the company can do with it. The company announced Friday that Sirius XM completed its $480 “strategic investment” in the company. Pandora is expected to put some of the money from the Sirius investment toward making much-needed improvements to its ad-supported radio business.
NEW YORK, Sept. 22, 2017 /PRNewswire/ -- SiriusXM (SIRI) and Pandora (NYSE:P) today announced that SiriusXM has purchased $307.5 million of Series A preferred stock in Pandora, completing the $480 million strategic investment announced on June 9, 2017. Under the terms of the agreement, a subsidiary of SiriusXM purchased $172.5 million of Series A preferred stock upon execution of the agreement on June 9, 2017 and today purchased an additional $307.5 million of the Series A preferred stock. The Series A preferred stock is convertible into common stock at a purchase price of $10.50 per share. The Series A preferred stock bears a 6% cumulative dividend, payable in cash, accretion of the Series A preferred stock or a combination thereof. The Series A preferred stock represents a stake of 19% of Pandora's currently outstanding common stock, and a 16% interest on an as-converted basis.
The streaming service turns to a video advertising product to breathe new life into its stock and its business.