Digital

Pandora preparing IPO

By | Published on Monday 14 February 2011

Pandora

US streaming music service Pandora is seemingly getting ready to go public, having filed the appropriate paperwork with the US Securities & Exchange Commission needed to stage an IPO, or initial public share sale. Although the specifics of the share offer are unclear, it is thought that the digital firm will look to raise about $100 million.

Although Pandora, like most digital music services, has had some wobbles over the years as it tried to reach viable licensing deals with record companies and music publishers, it does seem to have secured a level of stability that most in the streaming content space currently only dream of through a combination of ad and subscription revenues. That has arguably been achieved by offering limited on-demand functionality, which reduces licensing costs, and resisting the temptation to expand globally into territories – including Europe – where licensing terms are less friendly.

It is thought Pandora could be one of a number of digital IPOs in the next year or so as City types – feeling more flush than they have for a while and having long forgotten about the dangers of investing in internet ventures with no obvious long term revenue streams – clammer to get a slice of the social media digital content pie. Actually, compared to most firms likely to go the IPO route, Pandora is probably a safer bet.



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