Pandora Media Prices IPO At $16 Per Share

Pandora Media, an online music service is offering its IPO at $16 with 14.7 million shares. Initially it was decided to put the target price between $10 $12 but later on $16 was decided.

BTIG analyst Richard Greenfield recommended to investors to stay away from this IPO on Friday. He also said that Pandora is easy to use, free to access, works across a growing array of platforms in/out-of-home and has a de minimis amount of advertising compared to terrestrial radio.

Although Pandora wins lot of active users but still its reach is not so high as compared to terrestrial radio, and therefore it is finally affecting its profitability. The analysts said that this is the reason why initial price range was rejected for Pandora’s IPO.

The same sentiment is promoted by Jon Merriman, co-founder of Merriman Holdings Inc., in an interview with Bloomberg. Pandora’s business should be well considered by the potential investors, suggested by Scott Kessler, head of technology sector equity research at Standard & Poor's. He refers to terrestrial radio, satellite radio and other Internet radio companies.

Pandora is a great company and it needs to be able to target its listeners more closely but unfortunately, it has to face bigger challenges.