Report: Pandora, Rdio Deal 'Reeks of Desparation'

Pandora Chief Executive Brian McAndrews might want to put Queen’s “Under Pressure” on his personal playlist.

Shares in the Oakland, Calif., Internet radio station fell 7.1 percent on Tuesday after McAndrews’ push a day earlier to turn Pandora into an on-demand subscription streamer.

The NY Post reports Wall Street believes the move carries too much risk.

McAndrews said Pandora has reached a deal to buy some assets of Cumulus-backed Rdio for $75 million.

Shares fell to $12.47 as analysts questioned the CEO’s ability to pull off the switch.

“While the Rdio purchase is small ($75M cash), the move represents a massive shift from primarily domestic, ad-supported streaming to a potentially global, multi-product music offering,” Morgan Stanley analyst Benjamin Swinburne said in a research note.

BTIG analyst Rich Greenfield accused McAndrews of launching an “acquisition spree that reeks of desperation” — noting that the ondemand-music licenses won’t come cheap.

Music labels do not like free ad-supported models — preferring to ink deals with subscription models that share the more lucrative revenue stream.

In the three months ended Sept. 30, Pandora saw its active listeners slip to 78.1 million, down from 79.4 million in the previous quarter.

The drop was attributed to the free introductory launch of Apple Music.