News - 09/01/2017

Pandora loses $120m in value and Sirius XM defines "not likely" a buyout

Pandora loses $120m in value and Sirius XM defines "not likely" a buyout

Pandora’s share price dropped by more than 4% on January 6 – after SiriusXM’s financial boss said a buyout is not a priority.

Rumours about a Sirius takeover of Pandora have been around since it emerged, in July last year, that Sirius majority-owner Liberty Media had offered to buy the streaming music company. Liberty’s spurned was reportedly for $15 per share – valuing Pandora at $3.4bn. Pandora’s market cap currently stands at around half a billion dollars less than that figure.

More than $120m were lost following comments from Sirius CFO David Frear at Citibank’s 2017 Internet, Media & Telecommunications Conference in Las Vegas yesterday. Frear acknowledged whispers in the market over Sirius’s supposed intentions to buy Pandora – but also shrugged them off.

The exec said that Sirius looks for signs of organic growth potential and strategic incentives in any prospective acquisition target. Pandora, he suggested, simply did not meet this criteria:

With respect to all the chatter about [these] acquisitions, you have to look at them as them not being likely. That’s the way to characterize it.

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