Pandora is considering selling itself

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Are Pandora's days numbered?
Are Pandora's days numbered?
Photo: Pandora

One of Apple Music’s biggest competitors is looking to sellout.

Pandora, the music streaming service with more users than Spotify and Apple Music, has reportedly been meeting with private parties regarding a possible sale of the company after experiencing its slowest amount of growth ever last year.

“Pandora is working with Morgan Stanley to meet with potential buyers,” reports the New York Times. “The talks are preliminary and may not lead to a deal.”

The price of Pandora shares have dropped more than 60% since October 2015, making the company a pretty affordable target for a tech company looking to bolster its media platforms. The company is currently valued at $1.8 billion, after hitting a $7 billion market cap two years ago.

It’s unclear which companies are interested in purchasing Pandora. The company recently purchased rival streaming service Rdio for $75 million while Spotify boosted up its cash with a $500 million funding round.

Pandora’s executives have said they want to expand the service internationally, as it’s currently only available in the US, Australia and New Zealand. The service could also needs expanded features like allowing users to choose what songs to listen to in order to truly compete against Spotify and Apple Music.

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  • http://twitter.com/gettysburg11s gettysburg11s

    Pandora simply can’t make money using its current business model. They’d need to convert to a full streaming service, and then charge more than Spotify, which also probably would not work.

    • CelestialTerrestrial

      These streaming services are all eventually going out of business with the exception of Apple or any major company that doesn’t mind running that business unit at a loss.

      Spotify can’t make a profit. Tidal can’t make a profit, even Apple can’t make a profit doing it. It’s just not a profitable business at their current monthly rates. I think they’d all have to jack up their monthly rates by at least 25% or possibly more until they can break even and squeeze out even a small profit to make it worthwhile.