Pandora has settled ongoing hypothesis round its future by confirming it has obtained a $480 million funding type SiriusXM whereas offloading its ticketing enterprise Ticketfly to Eventbrite for $200 million.
Rumors that Pandora was courting patrons have persisted for a while, with SiriusXM touted as one potential suitor. Nevertheless, nothing has come to fruition, with Pandora insisting it wasn’t promoting and that it was “focused on executing its strategy and its operating model.”
As issues have transpired, Pandora’s declare was right, nonetheless it’s now clear that the duo have been cozying up of late, as evidenced by the substantial funding.
“This is a very significant juncture in Pandora’s journey,” noted Pandora founder Tim Westergren, who rejoined the company as CEO final yr. “After years of innovation and hard work we now have critical pieces in place: a massive and highly engaged audience, a market-leading digital advertising business, a best-in-class product portfolio, and a robust balance sheet that gives us the flexibility we need to attack what is becoming a larger and larger opportunity as digital music enters a new golden age.”
Pandora snapped up Ticketfly for $450 million lower than two years in the past, so to promote the corporate for 55 % much less should come as a blow. The transaction constitutes $150 million in money and a $50 million be aware.
Based in 2000, Pandora’s web radio service is available within the U.S., Australia, and New Zealand and now claims 100 million listeners. Historically, Pandora had differed from the likes of Spotify in that it didn’t provide an on-demand subscription tier, however this modified when the corporate unveiled a Spotify-like subscription service within the U.S. earlier this yr. Main as much as that, Pandora had been on a significant reinvention spree, spearheaded by Westergren’s return to the recent seat final March and the subsequent rebranding with a new logo.
Right this moment’s funding from SiriusXM comes a month after a $150 million cash injection from KKR & Co, which means that Pandora has an $800 million-plus battle chest as its disposal, which it says shall be used “sharpen” its operational focus and “strengthen the company’s board of directors,” in response to an announcement.
“Pandora is now poised to advance to the next stage of the company’s lifecycle,” added Pandora director Tim Leiweke. “We are pleased that the conclusion of our strategic review resulted in a major investment by a world class company like SiriusXM, and with the sale of Ticketfly, we will now redouble our focus on execution supported by a strong balance sheet.”
Pandora went public on the New York Inventory Alternate (NYSE) back in 2011, and the corporate’s shares peaked at greater than $37 in 2014, round $20 above its IPO value. Nevertheless, Pandora’s inventory has dropped to beneath $10 in current months, prompting Pandora to hunt a purchaser or investor — whichever got here first.