Bloomberg is reporting Apple’s potential entry into Internet
radio is poised to put online music pioneer Pandora Media on the takeover wish
lists of companies from Google and Amazon.com to Clear Channel Communications.
Pandora is projected to increase revenue by 214 percent in
the next two years, almost triple the median for U.S. Internet media companies
valued at more than $1 billion, according to data compiled by Bloomberg. With
the shares down 34 percent since their initial public offering, a buyer could
acquire a company trading for 21 percent less than the industry’s average
price-to-sales ratio using next year’s forecasts, the data show.
Pandora sank 17 percent on Sept. 7 amid speculation iPhone
maker Apple will introduce a rival service. Should Apple do so, that may compel
Google or Amazon to snap up Pandora’s 150 million registered users to offer the
service on mobile devices, Albert Fried & Co. and Needham & Co. said.
Radio-station owner Clear Channel may be interested as listeners and
advertisers shift to online media, according to Wedge Partners Corp. Needham
says Pandora could fetch $14 a share in a takeover, a 32 percent premium, while
Albert Fried sees the potential for a deal at about $20.
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