Internet radio service has suffered stock and user drops recently
Internet radio service Pandora Media is looking into the possibility of selling itself, according to a report in the New York Times.
Citing sources that have been “briefed on the talks,” the Times reports that Pandora has enlisted Morgan Stanley to meet with potential buyers. The paper cautioned that the preliminary talks may not ultimately result in an agreement to sell the company.
As the Times notes, Pandora’s stock has taken a hit in recent months, falling off more than 60 percent since October. Users are down as well, and the company adjusted its full-year earnings down in the third quarter, estimating earnings of $51 to $56 million, compared to the $75 to $85 million it had predicted in the previous quarter.
In December, the company was ordered to pay labels a higher royalty rate. Compared to its previous rate of 14 cents per every 100 streams of a song, the company was ordered to pay 17 cents per 100 streams, with the rate rising each year based on inflation.
The company will announce its fourth-quarter and full-year earnings later today.