Pandora Media radio, music streaming and recommendation service, files for $100m IPO
The California-based, music streaming and recommendation service, Pandora Media is seeking to raise about $100 million in an IPO (initial public offering). Morgan Stanley, JPMorgan Chase, William Blair and Stifel Nicolaus Weisel will handle the IPO.
In the first nine months of 2010, Pandora generated $90.1m (£56m) in revenues but reported a net loss of $0.3m (£0.2m), which was down from a net loss of $16.8m (£10.4m) for the previous fiscal year.
To survive, Pandora negotiated better terms with the music industry, narrowed its losses and attracted more than 80 million users. Its plan for an initial public offering, announced last week, would make it unique among Internet-music companies: None has gone public since Napster went bankrupt in 2002.
Marcus and Gotcher, venture capitalists who both play the drums, stuck with Pandora founder Tim Westergren through the company’s evolution from a music-recommendation site into a full-fledged radio service. Westergren, a musician, composer and producer, spent years creating the technology while maxing out his credit cards. He also had to lobby Congress to change a royalty system that threatened to bankrupt his company.
Back in June, Pandora raised an undisclosed sum in a fifth round of VC financing. It has previously raised $56.3m (£35m) in funding, with $35m (£21.7m) of it being raised in 2009. It reported 2009 revenues of $50m (£31m) and made royalty payments of $28m (£17.4m).
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