Spotify reportedly preps for IPO; sell-side defends Pandora

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

Bloomberg reports Spotify is working with Goldman to obtain a credit facility, a move that could pave the way for the music streaming service to go public.

The news service observes Facebook, Twitter, and Zynga all took out credit facilities before they went public, and that banks "often pitch loans to early-stage technology companies with an eye toward an underwriting role on an IPO down the road."

The report comes as Spotify announces it's acquiring The Echo Nest, developer of a music intelligence platform that delivers personalized song/artist recommendations and audience analytics. Spotify says it will use The Echo Nest to "drive music discovery" for its users, and help brands/partners develop better music experiences.

Meanwhile, Cowen and Wells Fargo are defending Pandora (P -5.8%) following the release of its Feb. audience metrics, even as both firms admit the numbers fell short of their estimates.

Cowen thinks Pandora's decision to stop releasing monthly metrics is due to the launch of a local audience measurement service in partnership with private Triton Digital. It also considers a selloff unsurprising in light of Pandora's recent gains.