Pandora stock is soaring on a New York Post report that satellite-radio powerhouse Sirius XM is in “active discussions” to buy the internet-radio pioneer.
The stock is up ~7.5% in trading this morning.
Pandora has endured on-an-off M&A rumors for months, as it tries to re-invent its business with the launch of an on-demand competitor to Spotify and Apple Music. That product finished its rollout last month.
Liberty Media, which controls satellite-radio powerhouse Sirius XM, has been seen as the only real buyer in town.
That means Pandora has had to endure stock swings whenever Liberty Media CEO Greg Maffei talks publicly about the company — which is often.
Most recently, earlier this month, Maffei talked unenthusiastically about Pandora’s KKR investment. In its quarterly earnings report, Pandora announced it had taken $150 million from private-equity firm KKR, and given KKR a seat in a boardroom shakeup. “My guess is they needed cash,” Maffei said. “I’m not sure it creates an opportunity. It speaks to the cash needs of their business.”
Maffei reportedly made an informal offer for Pandora at roughly $15 a share early last year. But in March, Maffei said that Pandora was “overvalued,” and that $10 per share was something that could work. On Thursday morning, the stock was trading at around $9.60 per share.