Pandora’s share price has seen a massive increase amidst speculation of a possible sale.
DMN previously reported a major slump in the share price after the departure of former CEO Brian McAndrews in March. McAndrews departure saw the reinstating of former CEO and co-founder Tim Westergren. But, now that there is talk of a sale looming the share price has perked up significantly, with a 32 percent spike over the past three weeks.
So, what’s been going on?
Well, there have been talks for some time that Pandora may go for sale. According to the rumours, Pandora have been working with Morgan Stanley to meet with potential buyers. Though, the talks were preliminary and may not result in a deal, according to the New York Times, a sale could nestle the company into a broader, more diversified music play.
Since the CEO switch, there have been refreshed reports of potential sales with other bidders like Verizon, SiriusXM amongst a handful of others. At this time, there currently isn’t much weight behind these reports, but it’s not a far-fetched claim considering the company is still heavily reliant upon ads and is not profitable as of yet.
Pandora have bagged themselves an increased share price this past weekend as a result of the sale rumours. It’s hard to tell at this stage if it’s all just one big rumour that’s circulating the music business or whether there are some solid foundation to the claims.