Pay-radio operator SiriusXM is widely reported to be again looking to buy streaming service Pandora.
Last summer the pair were said to be in talks but the rumoured $15 a share placed on the table by SiriusXM was apparently rejected despite valuing Pandora at some $3.4 billion.
Now, if the reports are accurate, Pandora is again talking although at a lower price. According to investment bankers Exane-BNP/Paribas, in the past year Pandora has lost about 3.4 percent of its subscriber base and bringing its ‘active’ users down to some 76.7 million. During Q1 this year Pandora’s revenues have risen 6.3 percent, but its net losses have widened by 15 percent to $132 million.
Yesterday’s news saw investors lift Pandora’s share price rocket up 9 percent, even though the offer now being discussed is a reported $12-$13 a share, and well down on last summer’s offer.