OAKLAND, Calif. � Pandora is actively trying to sell itself and believes it can get a deal done within 30 days, according to sources familiar with the company’s thinking, reports CNBC. Kohlberg Kravis Roberts, an investment firm known for its private equity and hedge funds, said Monday it plans to invest $150 million in Pandora in exchange for new shares of preferred stock, a deal that will close in 30 days.
Sources said Pandora thinks the KKR investment makes a sale more likely to happen.
Pandora earned more per share than Wall Street analysts expected in the first quarter of this year, even while losing listeners compared to this time last year.� The new strategy around premium subscriptions wasn’t able to boost forward guidance to meet estimates, according to the same article.
Pandora shares were lower on Tuesday before the report, after news was released on Monday related to the deal, including mixed financial results and an announcement that two board members would resign. �Shares pared losses slightly after news that Pandora is actively working to close a deal.
Users of the service are likely unaware and unconcerned about the service�s future. Pandora remains a popular business, and it’s been the No. 1 grossing music app every day in the App Store for the past six months with the exception of 5 straight days in November when Spotify took over, according to research from Apptopia.