Pandora hopes IPO will raise $123 million

Jun 03, 2011 By Alex Pham, Los Angeles Times

Pandora Media Inc., which announced plans earlier this year to sell its stock in an initial public offering, said it and its investors were seeking to raise as much as $123 million - an amount that would value the Internet radio pioneer at about $1.4 billion.

The proposal, filed Thursday with the Securities and Exchange Commission, calls for the Oakland, Calif., company to sell a little more than 5 million shares, priced between $7 and $9 a share. Pandora's stakeholders, meanwhile, expect to offer 8.7 million shares. The total of 13.7 million shares amounts to about 8.8 percent of the company.

Pandora, which requested to be listed under the ticker symbol "P," did not specify when it would begin selling its shares on the .

Among Pandora's investors are Walden Venture Capital, Crosslink Capital, Greylock Partners, Labrador Ventures, . and former News Corp. Chief Operating Officer Peter Chernin.

Although Pandora's music service is used by more than 90 million registered users, who have logged billions of hours in listening to its catalog of more than 800,000 songs, the company has yet to see a profit.

Pandora posted a loss of $1.8 million on $137.8 million in revenue for its last fiscal year, which ended Jan. 31. It paid out about half its revenue - $69.4 million - in fees and royalties to music labels and publishers.

The vast majority of Pandora's revenue, about $119.3 million, came from the 30-second ads that are inserted every 20 minutes on its basic service. A small number of Pandora's listeners pay a monthly fee for premium service without the ads, providing the company with about $18.4 million in revenue.

Pandora is expected to be one of the several hot technology stocks to debut this year. Santa Monica, Calif., online content firm Demand Media Inc.; LinkedIn Corp., a social network for professionals; and Russian search engine Yandex were among the most successful IPOs so far this year.

Other companies reportedly lining up for public offerings this year are Zynga Inc., a maker of social games, and Groupon Inc., which filed its IPO papers with the SEC on Thursday.

Explore further: Ticketfly buying WillCall for on-premise data

not rated yet
add to favorites email to friend print save as pdf

Related Stories

LinkedIn looking for $32 to $35 per share in IPO

May 09, 2011

(AP) -- Professional networking website LinkedIn Corp. hopes to sell its stock for $32 to $35 per share in an upcoming initial public offering. Its IPO may encourage other growing Internet services to make ...

Yandex poised for $1.3 bln Nasdaq debut: report

May 24, 2011

Russian Internet giant Yandex is set to raise $1.3 billion in an initial public offering (IPO) on the Nasdaq on Tuesday, exceeding expectations, the New York Times reported.

Recommended for you

Ticketfly buying WillCall for on-premise data

3 hours ago

Ticketfly Inc., a San Francisco-based technology company among several posing a challenge to Ticketmaster, is acquiring WillCall Inc., a crosstown rival that turns your smartphone into a mobile wallet at live events.

HP revenue inches up after years of decline

19 hours ago

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

Restaurants experimenting with pay-in-advance tickets

22 hours ago

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

Chip maker Infineon to buy California firm for $3B (Update)

Aug 20, 2014

German chip maker Infineon Technologies AG says it has agreed to pay $3 billion in cash for California-based semiconductor firm International Rectifier, which produces power-management components used in everything from cars ...

User comments : 0