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Shares of
Pandora Media Inc surged higher on heavy volume Thursday afternoon after
The New York Times reported that the company is exploring a sale of itself.
The New York Times, citing "people briefed on the talks," reported that Pandora is working bankers at Morgan Stanley to meet potential buyers. At this point, the talks are in early stages and may not necessary lead to a sale.
The publication opined that now is a "curious" time for Pandora to sell itself as its stock imply a market capitalization of just $1.8 billion, down from the nearly $7 billion the company was valued at two years ago. On the other hand, Pandora continues to face intensifying competition and its user base continues to shrink.
The stock was briefly halted on a circuit-breaker. It recently traded at $9.25, up 10 percent.
The New York Times continued, "Pandora has the largest number of users for music streaming, but the competition is encroaching. Spotify is said to be arming itself with another $500 million in capital, and Apple Music recently surpassed 10 million paying users. Pandora's users peaked at 81.5 million at the end of 2014, declining to 78.1 million in the third quarter."Loading...
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