Bearish Pandora Analyst Calls Deal With Microsoft A 'Fairy Tale,' Recalls Prior McAndrews Deal
Albert Fried & Company believes Microsoft (NASDAQ: MSFT)/Pandora (NASDAQ: P) story is likely a “fairy tale” and the Microsoft board is “likely to refuse a transaction with Brian McAndrews," CEO of Pandora.
The firm's Tullo recalled a deal in 2012 where “Microsoft wrote down its $6.2 billion in cash to buyout of aQuantive an Ad Exchange operated by [current] Pandora CEO Brian McAndrews.”
The analyst suggested the purchase of aQuantive “is one of the reasons why McAndrews is not the MSFT CEO.”
Tullo maintains an Underweight rating and $23 price target on Pandora.
Despite the seemingly bearish comments from Tullo, Pandora shares are up nearly 4 percent on Wednesday. The stock is now up more than 5 percent so far this week.
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