×
You will be redirected back to your article in seconds

Is a Pandora-SiriusXM Deal Back On?

Barely two months after talks about a possible SiriusXM purchase of the embattled internet radio service Pandora collapsed, they may be back on again, according to a report in the New York Post.

In early March, Greg Maffei, CEO of SiriusXM parent company Liberty Media, called Pandora “overvalued” and said it was unlikely the John Malone-led conglomerate would buy Pandora at its then-current stock price, which was $12.47 per share. His comments, which many at the time speculated were a play to drive down a purchase price, sent Pandora’s shares down 6%.

A source told the Post that a bid could be as high as $12-13 per share, but another source said that price was far too high. Maffei has said he believes Pandora is worth $10 per share. The company’s shares closed at $8.93 on Wednesday.

The Tim Westergren-helmed Pandora has been nothing if not active in the past few weeks. Its earnings report early in May revealed that private equity investment fund KKR had committed to investing $150 million in the company. As part of that deal, KKR is getting its hands on preferred stock of the company, as well as a seat on Pandora’s board of directors — but if Pandora were to be sold by early June, it would have to pay KKR just $15 million, thus increasing the urgency of a sale.

Pandora saw its ad revenue slow down in Q1, but subscriber growth accelerated, thanks in part to the launch of its Premium service, which directly competes with Apple Music and Spotify. A total of 1.3 million users began a trial subscription in the past seven weeks alone. However, moving into the streaming business has been an expensive proposition for the company; it is also reportedly looking to sell off its ticketing business, Ticketfly, which it purchased just 18 months ago for $450 million.

When reached by Variety a rep for Pandora declined to “comment on rumors and speculation”; a rep for SiriusXM did not immediately respond to requests for comment.

 

 

More Biz

  • Tokyo Film Festival and Market Choose

    Tokyo Film Festival and Market Set Separate Dates in 2019

    The Tokyo International Film Festival and its accompanying rights market, TIFFCOM, will be held on separate dates this year. Some film executives may have to choose to attend one or the other. The film festival Wednesday announced that it will be held from Monday, Oct 28 to Tues, Nov. 5. Previously, the TIFFCOM market said [...]

  • Jeremy Vuernick

    Capitol Music Group Promotes Jeremy Vuernick to Executive VP of A&R

    Jeremy Vuernick has been promoted to Executive Vice President of A&R for Capitol Music Group, it was announced today by CMG COO Michelle Jubelirer and president Ashley Newton. In his elevated position, Vuernick will draw upon his broad experience as an A&R executive to sign and develop artists for the company, as well as oversee recording projects for new and [...]

  • Darnell Strom

    Darnell Strom to Lead UTA's Newly Created Culture and Leadership Division

    Darnell Strom has joined UTA and is set to lead its newly created Culture and Leadership division. Strom will represent and work with existing and new UTA clients who want to expand their diverse businesses and cultural influence at the intersection of entertainment, media, entrepreneurship, politics, the arts, and thought leadership. Strom brings years of [...]

  • Editorial use only. MANDATORY CREDIT: PARLIAMENTARY

    British Lawmakers Reject Prime Minister's Brexit Plan, Heightening Uncertainty

    British lawmakers have resoundingly rejected Prime Minister Theresa May’s terms for the U.K.’s withdrawal from the European Union, heightening the country’s sense of uncertainty and paralysis less than two months before the exit is supposed to take effect. Parliament rejected May’s Brexit plan by a 432-202-vote Tuesday evening, one of the biggest parliamentary defeats in [...]

  • Dan Cohen nonesuch records

    Nonesuch Promotes Dan Cohen to Senior VP of Marketing

    Dan Cohen has been named Nonesuch Records’ senior vice president of marketing, the company announced today. In his new role, Cohen oversees marketing, sales, publicity, new media, and content creation for the long-running Warner Music Group label. Cohen reports to Nonesuch President David Bither and is based at the label’s headquarters in New York. Cohen [...]

  • hollywood debt

    Can Hollywood's Biggest Media Companies Avoid Getting Crushed by Debt?

    Randall Stephenson, AT&T’s chairman-CEO, summoned all of his folksy Oklahoma earnestness as he made an enthusiastic pitch to Wall Street analysts about the telephone company’s bold efforts to transform itself into a multimedia powerhouse. It was late November, less than six months after AT&T had wrapped up its $85 billion acquisition of Time Warner. But [...]

More From Our Brands

Access exclusive content