Analysts Comment Following Google/Songza Rumor
Google To Enhance Music Streaming
The Post wrote, “That Google was on the prowl for a streaming service, perhaps one with a well-known or catchy brand name, was reported exclusive by The Post on June 4. The search firm needs help defining its offerings in the space, experts said, pointing to Google Play Music All Access, which costs $9.99 per month, as one example of Page's weak line-up.”
Known for its Music Concierge feature, Songza enables users to choose a playlist from six situations, with filters for genre and mood. With Google's extensive song catalogue, Page could add algorithms to make its service more intuitive and a better streaming service overall.
The article highlighted that the $15 million offer “seems puny” with Spotify's $4 billion valuation and Pandora's (NYSE: P) $5 billion market cap.
Big Players In The Industry
Following Apple's acquisition of Beats and Amazon Prime setting up a streaming service, B. Riley & Co analyst Sameet Sinha told Benzinga “big players are looking to do something."
Sinha remarked on the movement and change in the streaming music industry, adding that “Google has been unsuccessful so far.”
Which Rumors Are Pandora Shares Responding To?
Pandora shares have traded up as much as 2.74 percent on Friday in an overall strong trading day.
In an interview with Benzinga, Barrington Research analyst James Goss suggests that the stock action is likely following the rumor of Twitter looking to buy a streaming service.
Goss attributed the extra gains in shares to the rumor that Twitter is looking to purchase two or three streaming music companies.
Shortly after the buzz on Twitter looking to acquire SoundCloud, the Financial Times reported that Twitter also looked into offers for Pandora and Spotify.
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