This Analyst Thinks Pandora's Ticketfly Acquisition Will Be A Disaster

• Roughly a month ago, Pandora Media Inc P announced it would acquire Ticketfly, Inc., a live events technology company.
• The aim was creating “the definitive music platform for connecting fans, artists and event promoters,” the News Release assured.
• Benzinga recently spoke about the issued with Wedbush's Michael Pachter. Below are his comments.

On October 7, Pandora announced it had entered an agreement to acquire Ticketfly, a provider of ticketing and marketing software for event venues and promoters across North America. The transaction was valued at roughly $450 million.

“This is a game-changer for Pandora – and much more importantly – a game-changer for music,” Pandora’s CEO Brian McAndrews assured. “Over the past 10 years, we have amassed the largest, most engaged audience in streaming music history. With Ticketfly, we will thrill music lovers and lift ticket sales for artists as the most effective marketplace for connecting music makers and fans.”

Pachter’s Take

Benzinga contacted Wedbush's Michael Pachter for comment. The analyst stated that the Ticketfly acquisition “Will be a Disaster” for Pandora, noting that the sell side tends not to think of Pandora M&A from a strategic standpoint.

Moreover, Pachter explained his estimates suggest Ticketfly users overlap only ~3 percent with Pandora users.

The expert went on to look into the upside in Pandora, which he classified as a “Dead Cat Bounce.” To conclude, Pachter pointed out that “serial” news “has no fundamental impact” on the company’s business.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.