Pandora gains on Microsoft acquisition rumor. Albert Fried skeptical.

|About: Pandora Media (P)|By:, SA News Editor

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).