One Reason Why Pandora (P) Stock is Soaring Today

The New York Times, citing “people briefed on the talks”, reported that Pandora is working bankers at Morgan Stanley to meet potential buyers.

It was just last November that Pandora announced that they would be acquiring Rdio’s assets for $75 million.

Pandora’s users are also on the decline from 81.5 million at the end of 2014 to 78.1 million in the 3rd quarter. The Oakland, California-based company posted on Thursday diluted earnings per share of 4 cents on revenue of $336 million. Pandora shares jumped as much as 15 per cent and were trading at $US9.24, up 10 per cent, at 2:30 p.m.in New York after the New York Times reported on the talks earlier Thursday. Pandora offers its existing radio service in the U.S., Australia and New Zealand, but would need to secure new rights to expand elsewhere.??

Shares of online radio giant Pandora surged more than 9 percent Thursday on a report that it is exploring a sale.

But Wedbush Securities’ Michael Pachter remains a fan, with a target stock price of $26.

Pandora’s stock has plummeted the past few months, and its executives have lashed out at rivals in the streaming industry for creating an unsustainable business environment by burning capital. It collapsed after execs tacitly acknowledged that Pandora will be hurt more than investors expected by music service competitors including Apple, Google, and Spotify.