Pandora Raises Value Of Public Offering By 48 Percent Following LinkedIn's Success

NEW YORK (Clare Baldwin and Jennifer Saba) - Online radio company Pandora Media Inc increased the proposed value of its initial public offering by almost 50 percent, hoping to catch investor fever that has taken Internet companies such as LinkedIn (LNKD.N) to new heights.

The Oakland, California-based company is seeking to raise $161.5 million, representing 14,684,000 shares priced at $10 to $12 each.

Last week, Pandora said in a filing that it planned to raise $109.5 million with the sale of 13,684,000 shares offered at $7 to $9 each.

Pandora runs an online service that allows users to stream free music based on feedback from the listener. It is the latest hot Internet company to file for its public debut after a string of other high-profile peers that include online daily deal site Groupon.

(Editing by Lisa Von Ahn)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[NotNarrow]

09:34 PM on 06/12/2011

Pandora is a juke box. Try listening to independent local stations (Internet and terrestrial). Their services are truly valuable, but won't be there when you need them if you don't support them now.

[gkarayannis]

07:31 PM on 06/12/2011

I actually LOVE Pandora...and forked over the $36/year for the no-ad version. In fact, I'm listening to it right now during a 5-hour airport delay. Their music selection algorithms are by far the best of any XM/Sirius or other app I've tried, and the ability to create multiple channels makes it easy to have a wide variety of music handy based on mood. Will going public hurt service? Maybe, but $160M can buy a lot of support capabilities. I would like the ability to contact them via email as I occasionally have questions (e.g., why play so much live music in my mixes?).

Honestly, maybe every month or so I actually think / say "I LOVE Pandora." I think of Pandora as the best tech service / product since the iPod / iPhone and Tivo.

[Issa]

12:34 PM on 06/13/2011

Once Pandora picked up Disney as an advertiser and started rolling "It's A Small World" between songs, I upgraded my account within 24 hours.
After that, I sent them an email, congratulating them on their brilliant and evil marketing plot.
Characteristically, they emailed back within the hour and said that it wasn't their plan to annoy people into subscribing, but they were happy I had done so, nonetheless.

[Danish Kapur]

10:16 PM on 06/11/2011

First Linkedin, then Groupon and now this Pandora. I am also thinking of creating a website and leaving it open for people to register and then going for IPO. Who cares if the website makes profit or not? Groupon has lost nearly half a billion dollars since its inception and now coming up with a huge IPO.

[P Alan Greene]

04:22 PM on 06/11/2011

Are there no cheerleaders on the huffpost staff?

S-U-C-C-E-S-S. That's the way we spell success.

[jasminish]

09:56 PM on 06/11/2011

haha!! I love this! i was thinking the same.

[P Alan Greene]

08:24 AM on 06/12/2011

and they fixed it, at last

[Yorksgal]

04:21 PM on 06/11/2011

I really like Pandora and subscribe to their no ad service.

I am dreading when they go public, because as others have said when that usually happens service, quality and reliability take a dive.

[Kozmo Koz]

01:30 PM on 06/11/2011

pandora is awesome....

[spytheweb]

01:11 PM on 06/11/2011

The only radio i listen to is Sirius satellite radio. Just think over 100 channels, all types of music from the 50's, 60's 70's, 80's, 90's. Sports channels ESPN, Mad dog, Sporting News, NFL Network, all the NFL games every Sunday home team broadcasts and away teams and no blackouts. You can drive across country and stay on the same channel all the way across. Service is about $15.00 a month. I have had it about 5 years now,  can use in the car or home. http://www.siriusxm.com/

[Foxwizard]

09:35 PM on 06/11/2011

What's your point?

[Leftmin]

07:02 AM on 06/12/2011

If only their internet player didn't break 4 months ago. I hear they are still working on fixing it. Luckily, I canceled right away. Dropping audio, horrible UI, and annoying you to click something every hour is unforgivable. Their Facebook discussion thread is also a fun pile of hatred from their customers. Just no.

[Basselope]

11:34 AM on 06/11/2011

Love Pandora. Wouldn't touch linkedin, but Pandora will be a buy for me!

[frank day]

11:23 AM on 06/11/2011

Does Pandora turn a profit?

[Foxwizard]

09:36 PM on 06/11/2011

Most companies doing IPO's don't turn profits yet.

[womenforaction]

03:35 AM on 06/11/2011

I don't use LinkedIn nor do I use Pandora. I have to admit LinkedIn is overrated, (in agreement with comment below)...

[bynddrvn5]

11:06 PM on 06/10/2011

LinkedIn has to be one of the most overrated companies of all time.

http://seekingalpha.com/article/270974-linkedin-overvalued-but-a-dangerous-short

[Grimway]

09:07 PM on 06/10/2011

I have to admit I like Pandora...

[snommel]

08:51 AM on 06/11/2011

I use and enjoy Pandora as well, but as they go public, I expect their services will go down in quality and get more expensive, as happened with Netflix. I think I may return to using Lastfm.

[songbookz]

10:13 AM on 06/11/2011

Lastfm has more less known artists (7and5, and Turkish and Arabic pop (was stationed in the Middle East, so when I get to feeling nostalgic)) than Pandora, but whatever it is that they use to determine music you'd like, in a word, sucks.

[Foxwizard]

09:37 PM on 06/11/2011

I love Pandora, but am sure quality will degrade after they go public.