Microsoft May Buy Pandora? Vague Rumor Sends P Stock Up

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

Pandora an Internet radio leader[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.

  1. [Image]:
  2. P:
  3. MSFT:
  4. questioned the likelihood:
  5. which later wrote off almost all of the deal’s value:
  6. tapped Satya Nadella to succeed Steve Ballmer:

Source URL:
Short URL: