Pandora gains on Microsoft acquisition rumor. Albert Fried skeptical.


Pandora (P +3.8%), which had 10% of its float shorted as of Jan. 31, is rallying following a vague rumor Microsoft is interested in buying the company.

Albert Fried, which downgraded Pandora to Underweight in November, is skeptical of the rumor, given Microsoft once took a $6.2B write-down on a company run by Pandora CEO Brian McAndrews at the time of its acquisition (online ad agency aQuantive).

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Comments (9)
  • manicdvln
    , contributor
    Comments (1545) | Send Message
     
    Buy calls, then spread a lie, collect on pump.

     

    Same old story.
    26 Feb 2014, 12:47 PM Reply Like
  • alphaRAJU
    , contributor
    Comments (484) | Send Message
     
    Nokia MixRadio is a better buy. But why buy? It's going to be pre-installed on NokiaX X
    26 Feb 2014, 12:50 PM Reply Like
  • Andrew Shapiro
    , contributor
    Comments (2170) | Send Message
     
    Why does SA editors provide a link to a twitter feed that is closed to viewing. That doesn't provide ANY support to their editorial comment.
    26 Feb 2014, 12:52 PM Reply Like
  • Andrew Shapiro
    , contributor
    Comments (2170) | Send Message
     
    DJ Overriding Reason Microsoft Wouldn't Buy Pandora -- Market Talk

     

    12:17 EST - Pandora (P) hits fresh record highs amid chatter
    Microsoft (MSFT) could be considering a buyout. But Albert Fried calls
    that prospect "a fairy tale," with the reasons starting with who's
    running the Internet radio outfit--Brian McAndrews. He was CEO of
    aQuantive, an ad exchange MSFT bought in 2007 for $6.3B and which was
    the subject of a $6.2B write-down in 2012. McAndrews stayed at MSFT
    until 2009 and then did some venture-capital work until September's
    hiring by P. The investment bank suspects aQuantive is one of the
    reasons both Steve Ballmer gave up the CEO's post and that McAndrews
    wasn't a potential successor. "We think the Microsoft board is likely
    to refuse a transaction with Brian McAndrews." P rises 3.8% to $39.28
    while MSFT is flat. (kevin.kingsbury@wsj.com)
    (END) Dow Jones Newswires
    02-26-14 1217ET
    26 Feb 2014, 12:57 PM Reply Like
  • Andrei Volgin
    , contributor
    Comments (624) | Send Message
     
    It's quite possible that McAndrews is shopping for a buyer, given that Pandora's fundamentals deteriorate quickly while the stock keeps rising. He knows there is no way out of it other than to be acquired by someone like Microsoft - or watch the stock price collapse soon.

     

    I don't think, however, that the new CEO of Microsoft wants to start his tenure with a risky and expensive bet on a music service. He has his hands full with more important issues, like changing the org structure, integrating Nokia, etc.
    26 Feb 2014, 01:15 PM Reply Like
  • Rollo Tomasi
    , contributor
    Comments (273) | Send Message
     
    You shorts just line up and line up again for more abuse.
    26 Feb 2014, 02:42 PM Reply Like
  • Andrei Volgin
    , contributor
    Comments (624) | Send Message
     
    You know how it will end. Good luck trying to jump of this train before it wrecks.
    26 Feb 2014, 02:46 PM Reply Like
  • Andrei Volgin
    , contributor
    Comments (624) | Send Message
     
    By the way, Microsoft just stopped subsidizing Pandora on Windows Phone.
    26 Feb 2014, 04:14 PM Reply Like
  • manicdvln
    , contributor
    Comments (1545) | Send Message
     
    Insiders dumping their shares and management shuffling is because of imminent takeover! lol

     

    Greed will make you believe anything, just cash in your shares. Risking that extra 2-3$ upside not worth losing 20-30$.
    26 Feb 2014, 04:25 PM Reply Like
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