Is Pandora being eyed as a takeout target?
Bloomberg reported that Sirius XM has approached Pandora Media’s board, yet again, for the second time this year to acquire the Internet radio firm.
The newswire said, citing unnamed sources, that there was no price tag attached to the newest approach toward Pandora, and the latter has not yet responded to the overture. The last time there was an official bid, the offer stood at $15 a share. The stock rose to a recent $13 a share on the rumor of renewed takeout interest. There may indeed be some interest by Pandora in some type of deal, somewhere, with somebody, as Bloomberg reported that the firm’s advisers have been in the midst of “reaching out” to other suitors. The firm has been in the midst of working with Centerview Partners to suss out strategic options, said Bloomberg, again quoting unnamed people “familiar with the matter.”
The firm has been battling competitive challenges from Spotify and Apple in the online music streaming and radio business. As a result Pandora is also looking to target new businesses, with a goal of quadrupling sales in the next few years to $4 billion (such as concert promotion).