Sirius is actually interested in buying Pandora, “at the right price.”
Sirius Chairman Greg Maffei informed investors at a private dinner on Tuesday (Jan 10) that the satellite radio giant is still very interested in an acquisition move. This is according to a report in the New York Post.
All this is quite contrary to what happened last week when SiriusXM’s CFO David Frear openly dismissed the likelihood of a Sirius/Pandora buyout and sent the streaming platform’s share price tumbling.
Maffei, also the CEO of Sirius majority-shareholder Liberty Media, expressed concerns over Pandora’s losses and its upcoming launch of an on-demand service that would have to contend with tech giants such as Apple and Amazon.
“It’s not a well-run company, they haven’t executed,” the Post quotes Maffei as saying.
A further source suggested that Maffei believes: “Sirius would look at [Pandora] at the right price.”
There has been a lot of talk about a Pandora buyout by Sirius since last year July after Sirius majority owner Liberty Media had offered to buy the music streaming service.
Liberty’s offer at the time was reportedly $15 per share – valuing Pandora at $3.4bn.
According to MBW, Pandora’s current market cap sits at $2.8bn.
Everything gets interesting considering that Pandora announced just this week that it would cut 7% of its workforce. Perhaps this downsizing exercise will call in more interested buyers.
Additionally, we saw some coded language from Pandora yesterday that may have set off alarm bells amongst rightsholders.
The firm told investors that it planned to “leverage [our] analytics platform and ad insertion logic to drive additional revenue and realize leverage in content costs”.
What, we wonder, will ‘leveraging content costs’ entail?
Especially when the majors all crowed about the direct deals they had struck with Pandora across its services in September last year? Read more…