Wednesday, June 7, 2017

Pandora Stock Drops

Pandora shares took a dive on Tuesday as investors seemed to view hopes that a deal with SiriusXM was diminishing by the hour. Pandora shares tumbled 7.7 percent to $8.75.

The NY Post reports investors are focused on a Thursday deadline Pandora has set for itself to either conclude a sale with an outside party or accept new financing to boost its growth efforts.

Speaking at the Stifel media conference in San Francisco, Pandora CFO Naveen Chopra had little to say about any sale.

He did however discuss terms of the imminent finance deal with KKR, which is making a $150 million investment. That deal puts KKR’s Richard Sarnoff, the firm’s tech and media expert, on the company board.

It was reported on Monday that Verizon is also eyeing a similar type of investment in the online radio giant.

Chopra said, “The basic concept is following June 8, once closing conditions are met, we are contractually required to close the [KKR] deal. Prior to June 8, we do have the option to terminate in the event of an acquisition of the company.”

Meanwhile SiriusXM’s chief financial officer, David Frears, was busy downplaying the likelihood of striking a Pandora deal. Sources told The Post that Frears spoke at an ISI event in London and talked down any prospect of a combination. Sirius declined comment.

Pandora’s CEO Tim Westergren also appeared at an independent music conference in New York on Tuesday and revealed that Pandora accounts for 40 percent of music listening on Amazon’s Echo smart speakers.

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