Enjoy great online radio at AccuRadio

RAIN NEWS FLASH: Pandora shares leap to over $20 in market debut

Posted on: 06/15/2011


Pandora’s shares soared in its market debut Wednesday morning, opening at $20 per share (from its IPO price to institutional investors Tuesday night of $16) rising to $26 — equivalent to a valuation of $4.2 billion (121% higher than its propsoed $1.9 billion valuation last week here).

(Pictured at right: Pandora founder Tim Westergren, in brown jacket, and CEO Joe Kennedy, center, on the floor of the New York Stock Exchange this morning. Each owns Pandora shares worth over $75 million at the moment.)

The $26 high point (so far) “is nearly twice” the current value of AOL Inc.,” writes the Washington Post (here), “but a fraction of such Internet behemoths as Google Inc. or even Yahoo Inc.”

At this moment of publication, Pandora’s share price stands at just over $20. That’s still 220% to 285% of Pandora’s original suggested share price of $7-9. You can follow Pandora’s stock progress through Google here.

You can read more coverage of Tuesday night’s Pandora IPO price-setting of $16 here.

Stand by for continuing coverage and analysis from RAIN, including RAIN publisher Kurt Hanson’s exclusive interview this morning with Pandora founder Tim Westergren.

RAIN ANALYSIS: If the price this morning settles in at $20, that suggests that the underwriters priced the stock almost perfectly last night — high enough that Pandora got a lot more money for its shares than it previously expected, but low enough to still see a first-day-of-trading pop (which is a good PR move).

Incidentally, at a $20 stock price, Pandora’s enterprise value would be $3.6 billion, making it roughly tied with CBS Radio for the position of America’s third-most-valuable radio broadcast group (behind Sirius XM and Clear Channel Radio, but exceeding the enterprise values of the radio divisions of Entercom, Cox, Univision, and Radio One combined). — KH

(Pictured: Pandora CEO Joe Kennedy, at left, and founder Tim Westergren, at right, ring the opening bell at the New York Stock Exchange.)

share:  del.icio.us.  post this at del.icio.us  Reddit  post this at Reddit  Digg  post this at Digg  Yahoo   post this at Yahoo! my web  Wink   post this at Wink  Windows   post this at Windows Live  Google  post this at Google Bookmarks  Newsvine  post this at Newsvine


Commenting is closed for this article.

AccuRadio is powered by...
Conference schedules
Sep. 12 SF Music Tech Summit: San Francisco, CA
Sep. 13 RAIN Summit Chicago @ NAB/RAB RadioShow: Chicago, IL
Sep. 14-16 NAB/RAB RadioShow: Chicago, IL
Sep. 24 IBS Radio/Webcast Conf.: Chicago, IL
Oct. 6-7 Digital Music Forum West: Los Angeles, CA
Oct. 13-14 Digital Content Summit/Music: New York, NY
Oct. 18-22 CMJ Music Marathon: New York, NY
Oct. 27-30 CBI Fall Convention: Orlando, FL
Nov. 5 IBS Radio/Webcast Conf.: Boston, MA
Nov. 19 IBS Radio/Webcast Conf.: New York, NY
Dec. 3 IBS Radio/Webcast Conf.: Los Angeles, CA