A CNBC report that Pandora is willing to sell itself has caused the stock to surge on Friday.
Citing sources, CNBC said the company was “open to engaging in talks with longtime suitor SiriusXM.”
The Internet-radio pioneer was up over 12 percent at one point on Friday following CNBC’s report. Liberty Media, which controls Sirius XM, made an informal offer to buy Pandora earlier this year for the company valued at over $3.4 billion, according to the Wall Street Journal.
Pandora traded above $14 per share after the WSJ report, but recently fell to near $10, while the latest CNBC report has caused the stock to hit $13 at times on Friday.
The WSJ reported that the rejected offer was for $15 per share. Meanwhile, Reuters reported on Friday that Pandora is making “no new effort to sell itself,” citing a source. This isn’t the first time that a Pandora rumored sale has made news.
Back in February, The New York Times also cited sources to report that Pandora enlisted Morgan Stanley to meet with potential buyers.
In late 2015, the company was ordered to pay labels a higher royalty rate, which had a negative impact on its financials. 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.
Pandora has clearly generated a lot of news based on a potential sale, but investors seem to think the latest CNBC report has legs.