Despite Revenue Growth Pandora Is Exploring Options to Sell Itself
Officially Internet radio is big business and a major player in the sector is Pandora. On Thursday, the company reported that it earned $1.16 billion in 2015 from its personalized Internet radio platform while announcing its fourth quarter earnings report. Compared to last year the company noted twenty six percent boost in revenue. In spite of the strong results the company has plans to take a different route.
Reportedly, Pandora Media is holding discussions for selling the company. The largest Internet radio service is reportedly working with Morgan Stanley to discuss things with the likely buyers. However, sources say that the discussions are still at their preliminary stage and might not result into a deal.
Why is the company looking for a sales deal, the answer might be hidden in its recent earnings report. There is no doubt that the revenue is growing but side by side the content costs are scaling too at a very high rate to $610 million in last year. Along with that the audience number also dropped compared to the previous year. Audience number was at 81.1 million last year. Moreover the shares are also down with a market value of $1.8 billion a big drop from about $7 billion noted two years back.
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