Pandora Media Inc (NYSE:P), the world’s most powerful music discovery platform, today announced it has completed its acquisition of technology and intellectual property from Rdio. The company will also add nearly 100 former Rdio employees to its product, engineering and content licensing teams.
This move will accelerate Pandora’s plan to substantially broaden its subscription business and roll out a multi‐tier product offering by late 2016. With its industry‐leading Internet radio product, the recent acquisition of Ticketfly and the great talent, technology and IP of Rdio, the company will bring to bear a technology stack, monetization engine and data asset without peer.
Rdio sought protection in the United States Bankruptcy Court for the Northern District of California and began to wind down its business and release employees accordingly. Rdio discontinued their service as of December 22, 2015. Pandora’s acquisition of technology and talent from Rdio was subject to the approval of the Court, which was obtained onDecember 22, 2015. The purchase price is $75 million in cash, subject to certain purchase price adjustments.
Pandora’s agreement to acquire key assets and talent from Rdio was originally announced on November 16, 2015. (Original Source)
Shares of Pandora Media Inc closed yesterday at $14.19, down $0.02 or -0.14%. 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 $13.16 and its 200-day moving average is $16.38.
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 implies an upside of 19.8% from current levels. 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 TipRanks.com, 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 14.4% and 9.2% respectively. Anthony has a success rate of 62.0% and is ranked #56 out of 3649 analysts, while Diclemente has a success rate of 60.2% and is ranked #272.
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 $20.20, which implies an upside of 42.4% 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.