Pandora Media Inc (P) Shares Pop on Possible Sale Rumors

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Pandora Media Inc (NYSE:P) shares were up on Tuesday following rumors of a possible sale.

Pandora, P, Centerview PartnersSources close to the matter claim that Pandora has hired investment banking firm Centerview Patners to act as an advisor for the company. It’s goal is to help the music streaming service deal with activist investor Corvex, which wants the company to pursue a sale.

Pandora has already received an offer from Liberty Media Group (NASDAQ:LMCA). It’s offering $15 per share for the company. However, P values itself closer to $20 per share. It also reportedly hired Morgan Stanley as an advisor in May to help with a possible sale.

The insider sources claim that Pandora still has its relationship with Morgan Stanley, but that it hired Centerview to give it another look at its options in the future. Corvex, which has a 9.9% stake in P, pushed for a new company that hasn’t advised it in the past. Morgan Stanley helped it with its initial public offering in 2011, reports Bloomberg.

“Pandora is burning a significant amount of cash and the challenges to its business model do not appear changeable through scale or a change of ownership,” Andy Hargreaves and Evan Wingren, analysts at Pacific Crest Securities, said in a research noted obtained by CNBC.

An acquisition by Liberty Media could provide the company with the streaming service that it’s been searching for. It has a 64% stake in Sirius XM and the satellite radio company has been looking for a streaming service to help it move into the market.

P shares were up 1% as of Tuesday morning.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/07/pandora-media-p-shares-pop-possible-sale-rumors/.

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