Microsoft May Buy Pandora? Vague Rumor Sends P Stock Up

One analyst called the idea a 'fairy tale'

   

Microsoft May Buy Pandora? Vague Rumor Sends P Stock Up

Pandora 300x300 Microsoft May Buy Pandora? Vague Rumor Sends P Stock UpOn 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 200x200 Microsoft May Buy Pandora? Vague Rumor Sends P Stock Up
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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.


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/microsoft-may-buy-pandora-vague-rumor-sends-p-stock/.

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