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Online Music Streaming Service Pandora Filing For IPO

February 14, 2011 by Glen Comments Off on Online Music Streaming Service Pandora Filing For IPO divider image

According to a press release issued by the company, the streaming Internet radio company Pandora has filed for an initial public offering on their stock. They have filed a registration statement on Form S-1 with the U.S Securities and Exchange Commission, the SEC, in order to offer shares of its common stock.

As of now, the pricing, number of shares and date of release have not yet been determined.

Word of mouth, as well as their proprietary music genome project, have driven Pandora to be one of the most popular Internet music streaming service. When using most search engines to search for the term Internet Radio, Pandora generally appears first. Additionally, Pandora is ranked, according to Alexa, the 348th most visited site around the world, while it is ranked 60 in the United States.

Pandora’s rise to popularity has not been an easy one, however. Their licensing arrangements with the major music companies have made keeping afloat difficult. Despite advertisement revenue, as well as a subscription service, Pandora’s operating expenses have, in multiple years, exceeded their revenue.

Some are classifying Pandora’s stock as a high risk stock, especially considering their losses in recent years. Pandora has recently put its first profitable quarter on the books, however, as revenue had spiked at the end of 2009.

Pandora’s IPO is expected to raise $100 million for the company, though all figures are speculation. Pandora is entering the public arena at a time where many Dot Com’s are attempting to become public, including Facebook and Groupon who are said to be awaiting their own IPO.

Pandora still has to contend with music downloading to put files on Zune MP3 Players and iProducts. Some still prefer to purchase music rather than listen to a stream online.

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