Internet radio service provider, Pandora Media Inc (NYSE:P) announced its plan to offer 10 million new shares of its common stock to the public. The new public offering is worth around $230.8 million, and the company plans to use the proceeds for general corporate purposes, such as working capital and capital expenditures.
Pandora Media Inc (NYSE:P) said it may use some of the net proceeds of the public offering to acquire businesses, products, or technologies. The company clarified that it has no existing agreement or understandings on any acquisitions.
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According to the company, selling stockholders will offer an additional 4 million shares. It will not receive any proceeds from its stockholder’s stock offerings. Pandora Media Inc (NYSE:P) indicated its intention to provide its underwriters the option to buy as many as 2.1 million additional shares within 30 days to cover over-allotments.
JPMorgan Chase & Co (NYSE:JPM) and Morgan Stanley (NYSE:MS) serve as the primary underwriters for the proposed offering. Wells Fargo Securities, BofA Merrill Lynch, BMO Capital Markets, Canaccord Genuity, Needham & Company, Pacific Crest Securities, Piper Jaffray and William Blair serve as co-managers.
Pandora recently appointed Brian McAndrews
Meanwhile, the board of directors of Pandora Media Inc (NYSE:P) recently appointed Brian McAndrews as president, chief executive officer and chairman of the company. McAndrews formerly worked at Madrona Venture Group, aQuantive, and Microsoft Corporation (NASDAQ:MSFT). He replaced Joe Kennedy for this position.
Pandora’s founder and chief strategy officer, Tim Westergren, said the company has specific criteria and is very strategic in finding the right person to serve as its leader. According to him, “Brian is that person. No one better understands the intersection of technology and advertising, which he clearly demonstrated during aQuantive’s meteoric rise. He has a recognized ability to set strategy, lead large teams and drive growth and innovation at great scale. He is also a natural cultural fit with Pandora. This is a great development for our company.”
Pandora reported that its audience metrics increased by 16 percent
McAndrews was recognized as the first “Digital Executive of the Year” by Advertising Age, and he was considered one of the top 30 most influential executives in advertising, marketing, and media.
Earlier this month, Pandora Media Inc (NYSE:P) reported that its audience metrics increased by 16 percent. Its listener hours climbed from 1.16 billion to 1.35 billion in August. According to the company, its total radio listening market share in the United States increased from 6.30 percent to 7.46 percent. It has 72.1 million active listeners for the month, an increase of 28 percent from 56.2 million in August last year.