Microsoft May Buy Pandora? Vague Rumor Sends P Stock Up

One analyst called the idea a 'fairy tale'


Pandora an Internet radio leaderOn Wednesday, Internet radio company Pandora (P) saw its shares climb almost 4% after rumor circulated that Pandora could be an acquisition target for Microsoft (MSFT).

However, analysts quickly questioned the likelihood of a Microsoft purchase of Pandora. Albert Fried & Company noted that Pandora CEO Brian McAndrews formerly headed digital advertising firm aQuantive. McAndrews was aQuantive’s CEO when Microsoft paid $6.3 billion to buy the company, Benzinga notes.

Pandora Can Predict Your Political Party
Pandora Can Predict Your Political Party

The aQuantive acquisition proved a financial debacle for Microsoft, which later wrote off almost all of the deal’s value. Given that, an Albert Fried analyst described the possibility that Microsoft would consider buying Pandora a “fairy tale.”

Investors also appear to have lost faith in a potential for a deal between Microsoft and Pandora since P stock fell back more than 1% in Thursday morning trading, while Microsoft stock slipped modestly.

Earlier this month, Microsoft tapped Satya Nadella to succeed Steve Ballmer, becoming the software giant’s third CEO.

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