Pandora Media Inc (NYSE:P) has placed itself up for sale and it believes that it will have a buyer within the next 30 days.
Pandora made it officially known that it is welcoming its buyout within the next 30 days. Sources familiar with the matter told CNBC that the company believes it can attract a suitable deal in the next month. This expectation might seem too ambitious for the media streaming company. However, a recent report stated that a private equity firm called KKR invested $150 million in Pandora in exchange for a board seat and convertible preference shares.
Pandora embraces new changes
Pandora’s new and ambitious plan to sell itself in the next 30 days is part of the company investors’ plan to incorporate some changes. The firm also announced recently that technology investor Peter Gotcher and venture capitalist James M. P. Feuille will be stepping down from the company’s board. This will pave way for a new board that will be responsible for selecting new directors.
Pandora’s decision to give its self a 30-day window is not just a bet that it can do it but it is strategically connected to the KKR investment. If the company can find a buyer in the next 30 days, then its new owners might opt not to accept the KKR deal. This means that the new owners of the company would have to part with $15 million in order to terminate the deal.
“Having secured a significant financial commitment from KKR to strengthen the Company’s balance sheet, we have positioned the Company to evaluate any potential strategic alternatives, including a sale, in the 30 days before the financing is set to close,” stated outgoing director Feuille.
As for Pandora’s operations, it is currently working on boosting its profits through premium subscriptions. The company has been losing subscribers and thus the need to make a few changes that will position it in the right direction while at the same time allowing it to compete more effectively with rivals.
Pandora stock closed the latest trading session on Thursday at $9.50 after dropping by 4.52 percent from the previous close.
