Pandora Media Inc (NYSE:P) stock jumped on Friday following an investment from Sirius XM Holdings Inc. (NASDAQ:SIRI).
Pandora Media Inc has reached an agreement with Sirius XM Holdings Inc. for a $480 million investment from the internet radio company. It notes that this was part of the conclusion to its strategic review that started on May 8, 2017.
Pandora Media Inc says that it is now positioned to create a hybrid system that will include advertisements and subscription models for its music streaming service. The company believes that it will succeed in this effort, despite failures from other companies to make similar offerings.
The investment from Sirius XM Holdings Inc. wasn’t the only good news that Pandora Media Inc had for investors. The company has also agreed to sell its Ticketfly business to Eventbrite for $200 million.
Pandora Media Inc says that the sale of Ticketfly will bring it $150 million in cash and $50 million in notes from Eventbrite. It is expecting the sale to be completed during the third quarter of 2017. The two will also enter a commercial agreement for P to expand its scale of ticket offering opportunities.
Pandora Media Inc also reaffirmed its guidance for the upcoming quarter and the year. It is expecting revenue to range from $360 million to $375 million in its fiscal second quarter of 2017. Wall Street is expecting revenue for the quarter to be $369.27 million.
For the full fiscal year of 2017, Pandora Media Inc is expecting revenue to come in between $1.50 billion to $1.65 billion. Analysts are estimating full-year revenue of $1.58 billion for the music-streaming company.
P stock was up 4% as of Friday morning, but is down 32% year-to-date. SIRI stock is down 1% this morning, but is up 20% year-to-date.
