Shares of Pandora dropped 7.63% on Monday, just days after the streaming music service company’s massive investment deal closed.
Pandora announced on Friday morning that the company reached an investment deal with satellite radio giant SiriusXM (SIRI - Free Report) . The initial news sent Pandora’s stock price up as much as 7% last week, but Monday’s trading was not as kind to the online streaming music company.
Amid a tech industry-wide pullback, shares of Pandora closed just below their previous 52-week low. Pandora’s big dip came after its shares moved hands at three times its average volume.
The deal will see SiriusXM and its majority owner Liberty Media make a $480 million investment in Pandora. The nearly half a billion-dollar investment came after Pandora reportedly turned down a complete SiriusXM takeover proposal—and the two companies have been linked since Pandora rejected a July takeover offer.
The satellite radio company now reportedly owns about a 19% stake in Pandora and will also hold three board seats.
On top of the SiriusXM deal, Pandora sold its Ticketfly business for $200 million. What might have some investors worried is the fact that Pandora only purchased Ticketfly in October 2015—for $450 million in cash and stock—in a move to try to expand beyond its core ad-supported music business, which continually fails to expand its user base.
Pandora has also seen its dominance in the online and streaming music business infringed on due to Apple’s (AAPL - Free Report) Apple Music and Spotify’s continued growth in the premium ad-free service sector.
The company and its investors can only hope that the new influx of cash will help struggling Pandora focus on bolstering its main music-based business.
"This strategic investment in Pandora represents a unique opportunity for SiriusXM to create value for its stockholders by investing in the leader in the ad-supported digital radio business, a space where SiriusXM does not play today,” Sirius CEO Jim Meyer said in a statement.
“Pandora's large user base and its ability to provide listeners with a personalized music experience are tremendous assets.”
Shares of SiriusXM are down marginally in after-hours trading while Pandora has gained 0.64% since the closing bell. It seems that for now, only time will tell if SiriusXM’s Pandora investment will pay off.
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Shares of Pandora dropped 7.63% on Monday, just days after the streaming music service company’s massive investment deal closed.
Pandora announced on Friday morning that the company reached an investment deal with satellite radio giant SiriusXM (SIRI - Free Report) . The initial news sent Pandora’s stock price up as much as 7% last week, but Monday’s trading was not as kind to the online streaming music company.
Amid a tech industry-wide pullback, shares of Pandora closed just below their previous 52-week low. Pandora’s big dip came after its shares moved hands at three times its average volume.
The deal will see SiriusXM and its majority owner Liberty Media make a $480 million investment in Pandora. The nearly half a billion-dollar investment came after Pandora reportedly turned down a complete SiriusXM takeover proposal—and the two companies have been linked since Pandora rejected a July takeover offer.
The satellite radio company now reportedly owns about a 19% stake in Pandora and will also hold three board seats.
On top of the SiriusXM deal, Pandora sold its Ticketfly business for $200 million. What might have some investors worried is the fact that Pandora only purchased Ticketfly in October 2015—for $450 million in cash and stock—in a move to try to expand beyond its core ad-supported music business, which continually fails to expand its user base.
Pandora has also seen its dominance in the online and streaming music business infringed on due to Apple’s (AAPL - Free Report) Apple Music and Spotify’s continued growth in the premium ad-free service sector.
The company and its investors can only hope that the new influx of cash will help struggling Pandora focus on bolstering its main music-based business.
"This strategic investment in Pandora represents a unique opportunity for SiriusXM to create value for its stockholders by investing in the leader in the ad-supported digital radio business, a space where SiriusXM does not play today,” Sirius CEO Jim Meyer said in a statement.
“Pandora's large user base and its ability to provide listeners with a personalized music experience are tremendous assets.”
Shares of SiriusXM are down marginally in after-hours trading while Pandora has gained 0.64% since the closing bell. It seems that for now, only time will tell if SiriusXM’s Pandora investment will pay off.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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