The Analysts Thinks Pandora Takeover Rumors Were 'Started By Some Traders Trying To Make A $0.50 Profit'

Rumors about Pandora Media Inc P seeking to be acquired were circulating on Friday.

Benzinga reached out to Wedbush analyst Michael Pachter, who said that there are “two sides to a takeover: there’s a buyer, and there’s a seller. I think there are plenty of buyers, and I think that Pandora’s not a seller,” especially at current stock prices; the stock fell more than 50 percent over the past year.

Pachter added that he thinks buyers (if they were to consider an offer) would probably prefer to step in “after royalties are known (…) because it’s almost irresponsible to buy Pandora now (…) to take that risk.”

The analyst thinks the probability of a takeover is highly influenced by The Copyright Royalty Board proceedings. If a takeover were to take place, the labels could ask for different conditions. Pachter said that he doesn’t think there will be “anything this year” before the Copyright Royalty Board ruling.

Pachter closed his comments by saying he thinks these are probably “rumors started by some … traders trying to make a $0.50 profit.”

Shares of Pandora recently traded at $16.22, up 5.8 percent.

Javier Hasse and Brianna Valleskey contributed to this report