Company Update (NYSE:P): Pandora Media Inc Enters Into Landmark Direct Licensing Agreements With Merlin Network, Sony Music and Universal Music Group

Pandora2Pandora Media Inc (NYSE:P) announced the signing of direct licensing agreements for recorded music with Merlin Network, Sony Music and Universal Music Group, along with The Orchard and over 30 other independent labels and distributors.

These landmark agreements create a win-win partnership between Pandora and the music industry, opening up new revenue streams for artists and labels, while paving the way for Pandora to bring new products to market that enable enhanced subscription services, fuel new advertising opportunities and deliver unprecedented flexibility and ease of use to listeners. The agreements apply to Pandora’s business in the United States.

“This was a truly collaborative attempt to find a solution that would support artists while profitably growing our respective businesses,” said Tim Westergren, founder and CEO of Pandora. “And that is exactly what we achieved. Working together, we can reshape the digital music market and grow a great business that provides tremendous value to the music industry for decades to come.”

The newly signed music companies join ASCAP, BMI and more than 2,700 publishers who also recently partnered with Pandora to license their full catalogs for use on the company’s upcoming products, ensuring a steady new stream of income to recording artists and songwriters alike.

Today, more than 78 million users listen over 24 hours per month to Pandora’s ad-supported and subscription offerings – more than twice the engagement of all other streaming services. With these agreements, Pandora will soon deliver the world’s most personal and complete music experience, while opening up the full power of the platform to connect artists with their fans at scale and leverage the promotional offerings of Pandora’s Artist Marketing Platform (AMP). (Original Source)

Shares of Pandora are currently trading at $14.50 to $1.5%. P has a 1-year high of $22.60 and a 1-year low of $7.10. The stock’s 50-day moving average is $13.69 and its 200-day moving average is $11.44.

On the ratings front, Pandora has been the subject of a number of recent research reports. In a report released yesterday, Pacific Crest analyst Andy Hargreaves reiterated a Sell rating on P. Separately, on the same day, Suntrust Robinson Humphrey’s Robert Peck upgraded the stock to Buy and has a price target of $18.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Andy Hargreaves and Robert Peck have a total average return of 14.2% and 8% respectively. Hargreaves has a success rate of 53% and is ranked #215 out of 4143 analysts, while Peck has a success rate of 63.5% and is ranked #176.

Overall, one research analyst has rated the stock with a Sell rating, 8 research analysts have assigned a Hold rating and 12 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $15.08 which is 5.5% above where the stock closed yesterday.

Pandora Media, Inc. provides an internet radio service in the United States, Australia and New Zealand. It offers a personalized experience for listeners to listen radio on smartphones, tablets, computers and car audio systems and Internet-connected devices. The company has developed a form of radio that uses intrinsic qualities of music to initially create stations that then adapt playlists in real-time based on the individual feedback of each listener. Its service is available through various distribution channels and it has developed applications for smart phones, such as iPhone, phones running the android operating system, the windows phone and for tablets, including the iPad and tablets running the android operating system


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