Company Update (NYSE:P): Pandora Media Inc Signs Licensing Agreements with ASCAP and BMI

Pandora Media Inc (NYSE:P), the world’s most powerful music discovery platform, and ASCAP and BMI, the world’s leading Performance Rights Organizations (PROs), announced the signing of two separate multi-year licensing agreements for their combined catalogs of more than 20 million musical works. These deals create business benefits for Pandora, while modernizing compensation in the U.S. for ASCAP and BMI songwriters and publishers. In connection with the signing of the BMI agreement, Pandora has agreed to withdraw its appeal of the May 2015 order in the recent BMI rate case.

“This agreement is good news for music fans and music creators, who are the heart and soul of ASCAP, and a sign of progress in our ongoing push for improved streaming payments for songwriters, composers and music publishers that reflect the immense value of our members’ creative contributions,” said ASCAP CEO Elizabeth Matthews.

“We’re extremely pleased to reach this deal with Pandora that benefits the songwriters, composers and publishers we are privileged to represent,” said Mike O’Neill, President and CEO, BMI. “Not only is our new agreement comparable to the other direct deals in the marketplace, but it also allows us to amicably conclude our lengthy rate court litigation and focus on what drives each of our businesses – the music.”

“At Pandora we are delivering on our commitment to ensure that music thrives,” said Brian McAndrews, chief executive officer of Pandora. “These collaborative efforts with the leading Performance Rights Organizations, as well as our recent direct deals with several music publishers demonstrate our progress in working together to grow the music ecosystem.”

While the specific terms of both multi-year agreements are confidential, for each deal, the respective parties worked together to build an innovative approach to public performance licensing. The deals allow both ASCAP and BMI to further their goal of delivering improved performance royalties for their songwriters and publishers, while Pandora will benefit from greater rate certainty and the ability to add new flexibility to the company’s product offering over time. The public performance royalties Pandora also pays to rights holders of master recordings are not affected by this agreement. (Original Source)

Shares of Pandora closed yesterday at $14.21, up $0.09 or 0.64%. P has a 1-year high of $22.60 and a 1-year low of $11.38. The stock’s 50-day moving average is $13.10 and its 200-day moving average is $16.41.

On the ratings front, Pandora has been the subject of a number of recent research reports. In a report issued on December 17, Axiom analyst Victor Anthony reiterated a Hold rating on P, with a price target of $17, which represents a potential upside of 19.6% from where the stock is currently trading. Separately, on the same day, Nomura’s Anthony Diclemente reiterated a Hold rating on the stock and has a price target of $17.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Victor Anthony and Anthony Diclemente have a total average return of 14.0% and 9.1% respectively. Anthony has a success rate of 61.0% and is ranked #65 out of 3636 analysts, while Diclemente has a success rate of 60.2% and is ranked #268.

The street is mostly Bullish on P stock. Out of 23 analysts who cover the stock, 12 suggest a Buy rating and 11 recommend to Hold the stock. The 12-month average price target assigned to the stock is $20.21, which implies an upside of 42.2% from current levels.

Pandora Media Inc provides internet radio services on smartphones, tablets, traditional computers and car audio systems, as well as other internet-connected devices.

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