Online radio: IPO with a billion-euro valuation
The IPO of a web radio station has generated strong demand. Investors are racing to buy shares in the online radio station Pandora Media.
The US company recently recorded a quarterly turnover of 50 million. Pandora Media has now been valued at a total of around 2.5 billion dollars as part of its capital market placement. According to SDA, this is the result of the issue price announced on Tuesday.
The online radio station Pandora Media is offering investors 14.7 million shares and selling them at 16 dollars each. The company, which was founded in 2000, is now raising 235 million dollars through the IPO. All of the proceeds will go to the existing shareholders. According to the New York Stock Exchange, the trading debut is still planned for June 15.
Pandora Media's music program can be put together by its listeners according to their own taste. The 90 million registered users can listen to the music via computer, smartphone or in the car. There are also partnerships with Ford, General Motors and Mercedes-Benz.
The radio station derives its income from advertising. It has to pay considerable royalties for the music tracks. It is not yet a foregone conclusion for industry experts that money can be made with this business idea.
