Taking bets on Sirius buying Pandora this week. Odds 10:1 they don't...
Taking bets on Sirius buying Pandora this week. Odds 10:1 they don't...
Pandora could receive $100 million Verizon investment if SiriusXM deal falls through
MARKETWATCH 7:10 AM ET 6/6/2017
Liberty Media-owned SiriusXM has been in discussions to buy Pandora for between $11 and $12 a share, valuing the company at around $2.8 billion
Verizon (VZ) is eyeing a possible $100 million investment in Pandora Media(P) if the online music streamer fails to reach a deal this week for an outright sale to satellite radio giant SiriusXM, The Post has learned.
Top Verizon(VZ) exec
Tim Armstrong could be a candidate for the Pandora (P) board under one possible scenario, according to sources, with one insider noting that the radio giant could benefit greatly from Verizon(VZ)-owned AOL's expertise in programmatic, or automated ad serving.
Verizon (VZ) CEO
Lowell McAdam isn't weighing a full-on Pandora purchase at this stage since he is still busy integrating his acquisition of Yahoo with AOL in the short term, sources said. But Verizon(VZ) could be interested in data from Pandora's 80 million, mostly young mobile users. Pandora and Verizon(VZ) declined to comment. Officials at SiriusXM (SIRI) couldn't be reached for comment.
The Post confirmed on May 17 that Liberty Media's SiriusXM was holding active conversations about an acquisition of Pandora, and sources say SiriusXM has been conducting due diligence on Pandora for the past few weeks.
SiriusXM has recently been in discussions to buy Pandora for between $11 and $12 a share, valuing the company at around $2.8 billion, two sources close to the process told The Post.
Still, there are suggestions that prior conversations in early May were in the $13-a-share range. Fears linger that Liberty Media CEO
Gregg Maffei, negotiating on behalf of SiriusXM, will back out or try to negotiate the price down still further. Pandora's stock has had a rough few weeks amid the uncertainty, but closed up 1.8 percent on Friday at $9.30 a share. That's well under the $15-per-share bid SiriusXM made to Pandora's board last July. The rejection of that much higher offer last year could result in lawsuits, insiders say.
"There is a very high likelihood that something happens in the next week to 10 days but you just never know with
Greg Maffei," a source close to talks said. "It makes sense for everybody. Its 60 percent to 65 percent it happens." If Pandora and SiriusXM can't come to terms, Pandora has lined up other options. Private equity firm KKR said last month it would invest $150 million in Pandora in return for preferred shares if the firm had not sold itself within 30 days. The 30-day deadline arrives this Thursday.
"KKR really wants to do this deal," a source said. "They like the business and the Pandora service and the deal will be good for them."
If KKR moves in -- likely with Verizon(VZ), which according to one source also sees Pandora was a way to further its push into internet-connected cars -- Pandora management under founder
Tim Westergren is almost certain for yet another shake- up. Sources say Pandora's major shareholders, the two activist investors Corvex and Matrix, are essentially calling the shots in deal talks. Notably, billionaire
Steve Cohen's family office Point72 acquired a 5.4 percent stake in the venture last month.
Pandora's chief financial officer,
Naveen Chopra, is expected to present an upbeat picture of the second quarter at Stifel's Tech and Media conference in San Francisco on Tuesday. Meanwhile SiriusXM's stock has risen on market expectations for a deal with Pandora. It could be headed for a fall if a deal dissolves. Since The Post's report on May 17, SiriusXM's stock has risen 16 percent, or 75 cents per share, to $ 5.48 from $4.73.
"SiriusXM's stock has risen by an amount that exceeds the entire market cap of Pandora," which stood at $2.27 billion on Friday, a source noted.
Odds 2:1 they do.Quote:
Originally Posted by bdp.
But will be at the 11th hour.
Who's adding here? I am thinking about it.
I m also thinking about it but it seems P is in a free fall which to me indicates that a deal is faultering and the sale to Sirius may not happen. So I'm holding off for now. A better play may be P if the sp dips low enough. I may grab a few shares. As far as their potential $250mln infusion, I don't really see how that will do anything but prop up the company for a few months while they look for a buyer. A sale to Sirius is the only sensible option for them since there are no other entities interested that currently operate in this space and could effectively lift it from the doldrums of inevitable failure and integrate it with a profitable business. If Sirius does not buy it now, I certainly believe Siri will purchase further down the road for an even lower price when the SP is around $5. Currently the most frustrating thing is it appears to be taking Sirius down with it.Quote:
Originally Posted by midas360
If the Pandora deal falls through, how significant is the Verizon deal? I am surprised AT&T didn't step in and take out Sirius XM. They are all about every device on their network.
Quote:
Originally Posted by bdp.
I don't believe Verizon is currently considering buying Pandora, at least not based on the current sp. Pandora has never been profitable and lose over $250mln annually. So unless they acquire Pandora for a steal like Liberty did Sirius, I don't see them offering more than Sirius for a purchase.Quote:
Originally Posted by midas360
By the looks of the SP of Pandora and Sirius, I don't think a deal is looking too promising.
Something isn't feeling right here for sure.
Quote:
Originally Posted by bdp.
Certainly looks like no deal but if it does happen, anyone willing to risk grabbing shares at these levels will be in for a substantial windfall!Quote:
Originally Posted by midas360
thanks midas....hopefully you guys get in it...nice solid pullback today....earnings next week. Its gonna have the walmart sales reflected in this earnings...at least one month of wally sales. Earnings after this one coming up will have all three months reflected. Watch out for Buyout too.Quote:
Originally Posted by midas360
Oh and dont't forget LQMT....just bought a 41ksqft manufacturing facility in California. Companies dont go buying 41ksq ft manufacturing facilities if they are not expecting contracts/orders. They have an apple connection....and Apple 8 rolls out in the fall.....things that make you say hmmmmmmm :)
Think liquid glass for phone which is 10 times stronger than steel. Interesting article if you like to give it a read.
Apple Patent Describes using Liquid Metal (Metallic Glass) for the Backside of an iPhone
http://www.patentlyapple.com/patentl...an-iphone.html
It's interesting to watch stocks when a "deal" is in the works. They tend to go down and rebound quickly.
Quote:
Originally Posted by bdp.
"Sirius XM Holdings Inc, the U.S. satellite radio company controlled by John Malone's Liberty Media Corp, is seeking to invest in internet music provider Pandora Media Inc, people familiar with the matter said.
Sirius XM is negotiating a private investment in public equity (PIPE) after talks about Sirius XM acquiring Pandora in its entirety ended unsuccessfully over price disagreements, the sources said on Wednesday."
Seems like a bailout situation which will inevitably result in Liberty owning Pandora the same way they now own the controlling share of Sirius. Will probably acquire the company for a pittance.
Its a shame they didn't take Pandora down to pennies first. :)
Quote:
Originally Posted by bdp.
I think it's going to go down the way they did it with Sirius.
You mean Pandora's stock price will go down before they invest any money?
Quote:
Originally Posted by Nazareth
Midas I ment the deal will go down not the stock.
http://www.cnbc.com/2017/06/08/pando...-siriusxm.html
Siri $450 mln investment in P. As I said before, Liberty will ultimately end up with a controlling share of P just like they did with Sirius.
I think you have nailed this one. It looks so similar. :) Now waiting for Verizon to step in.
Quote:
Originally Posted by bdp.
I got to hand it to liberty for knowing how to acquire companies for virtually nothing. I am sure this was their ideal scenario all along.