Microsoft May Buy Pandora? Vague Rumor Sends P Stock Up

by Christopher Freeburn | February 27, 2014 10:32 am

Microsoft May Buy Pandora? Vague Rumor Sends P Stock Up

Pandora 300x300 Microsoft May Buy Pandora? Vague Rumor Sends P Stock Up[1]On Wednesday, Internet radio company Pandora (P[2]) saw its shares climb almost 4% after rumor circulated that Pandora could be an acquisition target for Microsoft (MSFT[3]).

However, analysts quickly questioned the likelihood[4] 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.

The aQuantive acquisition proved a financial debacle for Microsoft, which later wrote off almost all of the deal’s value[5]. 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[6], becoming the software giant’s third CEO.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/11/Pandora.jpg
  2. P: http://studio-5.financialcontent.com/investplace/quote?Symbol=P
  3. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  4. questioned the likelihood: http://www.benzinga.com/analyst-ratings/analyst-color/14/02/4346872/bearish-pandora-analyst-calls-deal-with-microsoft-a-fair
  5. which later wrote off almost all of the deal’s value: http://investorplace.com/2012/07/shouldnt-acquisitions-actually-be-worth-it-msft-aquantive/#.Uw9YsNxhOf0
  6. tapped Satya Nadella to succeed Steve Ballmer: http://investorplace.com/2014/02/microsoft-ceo-msft-satya-nadella/#.Uw9Zf9xhOf0

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