| Sept 16
Sept 16 Pandora Media Inc warned on Monday
that its business is slowing and proposed a follow-on offering
of 10 million shares for capital expenditures, according to a
The online streaming music company also said an additional 4
million shares will be offered by Crosslink Capital Inc, a
venture capital firm.
Pandora shares fell almost 5 percent in after market trading
after closing at $23.99 on Monday.
The company said in the filing that it does not expect to
sustain "the rapid growth" experienced in both listener hours
and advertising revenue in the future, and will continue to
incur losses in the near term.
Pandora estimates the net proceeds from the sale of the
shares of common stock it is offering will be about $230.8
million, and it expects to invest "heavily" to support future
growth, the filing said.
Almost a decade old with 72 million active listeners,
Pandora is one of the most popular streaming music services in
the world. It makes its money primarily from advertising, but it
also faces stiff competition from the likes of Apple Inc
, Spotify and Sirius XM Radio Inc. The company
said in the filing that it expects its growth rate to decline
because of increased competition.
In addition, it has been actively lobbying congress to
recalibrate how royalties are paid to artists in order to hold
down the costs of licensing music. The more people who listen to
Pandora, the more expensive it becomes to legally access
millions of songs.
Last week the company named Brian McAndrews, a former
advertising executive who worked at Microsoft Corp and
venture capital firm Madrona Venture Group, as its chairman and