Will Sirius XM Buy Pandora or Not?
The satellite radio provider offers mixed
signals on its potential purchase of the
streaming music platform.
Jan 19, 2017 at 2:04PM
The peculiar courtship between Sirius XM Radio
(NASDAQ:SIRI) and Pandora (NYSE:P) is taking
some odd turns in January. Things kicked off earlier
this month with Sirius XM CFO David Frear casting
doubts on a potential pairing during the CES expo.
Frear would go on to argue that buyout activity
doesn't seem likely.
Advocates of Sirius XM snapping up Pandora have
argued that a deal makes sense given Sirius XM's
lack of success when it comes to achieving critical
mass with its streaming component, but Frear feels
that the ballyhooed cross-selling opportunities may not
be as tantalizing as proponents think.
It seemed as if this would be the end of another Wall
Street story of unrequited love, but late last week,
sources were telling The New York Post that Sirius XM
is still interested in making a play for Pandora -- at the
right price. Chairman Greg Maffei was reportedly telling
some shareholders that Sirius XM is still exploring a
purchase of Pandora.
Pandora isn't going to wait forever
The Wall Street Journal reported last summer that
Sirius XM's majority stakeholder was attempting to
buy Pandora for $15 a share. Sources at the time
said that Pandora rebuffed the offer, holding out for
a bid closer to $20 that clearly never came.
Pandora closed at $13 yesterday. It has spent most
of the past year trading between the high single digits
and low teens. The stock's 52-week high is $14.98,
and you have to go all the way back to late 2015 to
find the last time that Pandora stock was fetching
more than the initial $15 offer.
It seems that buyout speculation is about the only
thing moving Pandora shares these days, but that
wasn't the case late last week. Shares of Pandora
spiked higher on Friday after the streaming music
pioneer revealed that revenue and adjusted EBITDA
for the holiday quarter would exceed its earlier guidance.
Strength in its advertising business and a refreshing
uptick in premium subscribers helped prop up the results.
Pandora signed up 375,000 net new subscribers to its
premium Pandora Plus platform, raising its tally of paying
accounts to more than 4.3 million. This is still just over 5%
of its total user base, but Pandora's inability to wean
freeloaders off its ad-based service has been a pressure
point for some Wall Street pros in the past.
Some will rightfully argue that Sirius XM doesn't need
Pandora. Shares of Sirius XM hit a 10-year high this month
after the company announced that it wrapped up 2016 with
a whopping 31.1 million subscribers to its satellite radio
service. However, it's clear that Pandora is still on its radar
if the stock stays low without the fundamentals falling apart.
That window is there now, but it may not last.
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– so don't miss out on this moment.
SiriusXM to Provide More Than 34 Hours
of Programming from 2017 PGA
Merchandise Show
NEW YORK, Jan. 19, 2017
/PRNewswire/ -- SiriusXM today announced its
comprehensive programming lineup for listeners
nationwide for the 64th PGA Merchandise Show, the
golf industry's premier annual event, (January 24-27) in
Orlando, Florida. SiriusXM PGA TOUR Radio, SiriusXM's
exclusive 24/7 golf channel, will air more than 34 hours of
coverage from the PGA Show Demo Day at the Orange
County National Golf Center and PGA Merchandise Show
at the Orange County Convention Center.
The SiriusXM PGA TOUR Radio channel is available to
listeners nationwide on satellite radios (Sirius channel 208,
XM channel 92) and on the SiriusXM app. For more info on the
channel go to www.SiriusXM.com/SiriusXMPGATOURRadio.
SiriusXM's set will showcase live shows hosted by some of
the most enlightening and entertaining voices in golf including
Bob Ford, Hank Haney, David Leadbetter, Golf Channel's
Michael Breed, Chris DiMarco, John Maginnes, Carl Paulson,
Frank Darby, Brian Crowell, Matt Adams, Brian Katrek, Ben Shear,
Greg Warmoth and Taylor Zarzour.
SiriusXM will also present two "Town Hall" events from the
PGA Forum Stage at the Convention Center.
On Wednesday, Jan. 25 at 12:00 p.m. ET, legendary
college football coach and avid golfer Lou Holtz will join
PGA of America CEO Pete Bevacqua, who was a
member of the Notre Dame football team when Holtz
was head coach, for a special SiriusXM Town Hall
discussion in front of a live audience. The show will
be recorded and will air nationwide on SiriusXM PGA
TOUR Radio on Wednesday night at 10:00 p.m. ET.
On Thursday, Jan. 26 at 12:00 p.m. ET, SiriusXM's
"Teachers Town Hall" will happen on the PGA Forum
Stage featuring several of the game's most esteemed
instructors – Hank Haney, David Leadbetter, Jim
McLean and Golf Channel's Michael Breed. Debbie
Doniger will host the discussion and the instructors
– who are all SiriusXM hosts – will answer questions
from the audience. The show will air nationwide on
SiriusXM PGA TOUR Radio on Thursday night at
8:00 p.m. ET.
"We look forward to bringing SiriusXM listeners
from around the country inside golf's showcase
industry event, where our hosts will share their
impressions on the game's newest equipment,
technology and more," said Scott Greenstein,
SiriusXM's President and Chief Content Officer.
"With a schedule featuring PGA of America CEO
Pete Bevacqua and many of the game's best
teachers and experts, our audience will get special
insight into the topics and trends emerging in the
game now and in the future."
SiriusXM PGA TOUR Radio Schedule from the
PGA Merchandise Show: (All times ET)
Tuesday, Jan. 24 – PGA Show Demo Day
7 a.m. – 9 a.m.: Fairways of Life with Matt Adams (live)
9 a.m. – 10 a.m.: A New Breed of Golf with Michael Breed (live)
10 a.m. – 11 a.m.: Hank Haney Golf Radio with Hank Haney
11 a.m. – 1 p.m.: Inside the Ropes with Carl Paulson and Dennis Paulson (live)
1 p.m. – 2 p.m.: Opinionated with Chris DiMarco and Greg Warmoth
3 p.m. – 4 p.m.: On Course with Frank Darby and Brian Crowell
4 p.m. – 5 p.m.: Golfers Edge with Debbie Doniger and Ben Shear
5 p.m. – 7 p.m.: On Tap with Brian Katrek and John Maginnes
Wednesday, Jan. 25 – PGA Merchandise Show
7 a.m. – 9 a.m.: Fairways of Life with Matt Adams (live)
9 a.m. – 10 a.m.: A New Breed of Golf with Michael Breed (live)
10 a.m. – 11 a.m.: Hank Haney Golf Radio with Hank Haney (live)
11 a.m. – 1 p.m.: Inside the Ropes with Carl Paulson and Dennis Paulson (live)
12 p.m. – 1 p.m.: SiriusXM's Town Hall with Lou Holtz and Pete Bevacqua
(live on stage, taped for later airing)
1 p.m. – 2 p.m.: The Starter with Taylor Zarzour (live)
2 p.m. – 3 p.m.: Callaway LIVE with Amanda Balionis and Jeff Neubarth (live)
3 p.m. – 4 p.m.: Playing for Pride with Bob Ford and Taylor Zarzour (live)
5 p.m. – 7 p.m.: On Tap with Brian Katrek and John Maginnes (live)
The satellite radio provider offers mixed
signals on its potential purchase of the
streaming music platform.
Jan 19, 2017 at 2:04PM
The peculiar courtship between Sirius XM Radio
(NASDAQ:SIRI) and Pandora (NYSE:P) is taking
some odd turns in January. Things kicked off earlier
this month with Sirius XM CFO David Frear casting
doubts on a potential pairing during the CES expo.
Frear would go on to argue that buyout activity
doesn't seem likely.
Advocates of Sirius XM snapping up Pandora have
argued that a deal makes sense given Sirius XM's
lack of success when it comes to achieving critical
mass with its streaming component, but Frear feels
that the ballyhooed cross-selling opportunities may not
be as tantalizing as proponents think.
It seemed as if this would be the end of another Wall
Street story of unrequited love, but late last week,
sources were telling The New York Post that Sirius XM
is still interested in making a play for Pandora -- at the
right price. Chairman Greg Maffei was reportedly telling
some shareholders that Sirius XM is still exploring a
purchase of Pandora.
Pandora isn't going to wait forever
The Wall Street Journal reported last summer that
Sirius XM's majority stakeholder was attempting to
buy Pandora for $15 a share. Sources at the time
said that Pandora rebuffed the offer, holding out for
a bid closer to $20 that clearly never came.
Pandora closed at $13 yesterday. It has spent most
of the past year trading between the high single digits
and low teens. The stock's 52-week high is $14.98,
and you have to go all the way back to late 2015 to
find the last time that Pandora stock was fetching
more than the initial $15 offer.
It seems that buyout speculation is about the only
thing moving Pandora shares these days, but that
wasn't the case late last week. Shares of Pandora
spiked higher on Friday after the streaming music
pioneer revealed that revenue and adjusted EBITDA
for the holiday quarter would exceed its earlier guidance.
Strength in its advertising business and a refreshing
uptick in premium subscribers helped prop up the results.
Pandora signed up 375,000 net new subscribers to its
premium Pandora Plus platform, raising its tally of paying
accounts to more than 4.3 million. This is still just over 5%
of its total user base, but Pandora's inability to wean
freeloaders off its ad-based service has been a pressure
point for some Wall Street pros in the past.
Some will rightfully argue that Sirius XM doesn't need
Pandora. Shares of Sirius XM hit a 10-year high this month
after the company announced that it wrapped up 2016 with
a whopping 31.1 million subscribers to its satellite radio
service. However, it's clear that Pandora is still on its radar
if the stock stays low without the fundamentals falling apart.
That window is there now, but it may not last.
Trump's potential $1.6 trillion investment
We aren't politicos here at The Motley Fool. But we
know a great investing opportunity when we see one.
Our analysts spotted what could be a $1.6 trillion
opportunity lurking in Donald Trump's infrastructure
plans. And given this team's superb track record (more
than tripling the market over the past decade*), you don't
want to miss what they found.
They've picked 11 stocks poised to profit from Trump's
first 100 days as president. History has shown that
getting in early on a good idea can often pay big bucks
– so don't miss out on this moment.
SiriusXM to Provide More Than 34 Hours
of Programming from 2017 PGA
Merchandise Show
NEW YORK, Jan. 19, 2017
/PRNewswire/ -- SiriusXM today announced its
comprehensive programming lineup for listeners
nationwide for the 64th PGA Merchandise Show, the
golf industry's premier annual event, (January 24-27) in
Orlando, Florida. SiriusXM PGA TOUR Radio, SiriusXM's
exclusive 24/7 golf channel, will air more than 34 hours of
coverage from the PGA Show Demo Day at the Orange
County National Golf Center and PGA Merchandise Show
at the Orange County Convention Center.
The SiriusXM PGA TOUR Radio channel is available to
listeners nationwide on satellite radios (Sirius channel 208,
XM channel 92) and on the SiriusXM app. For more info on the
channel go to www.SiriusXM.com/SiriusXMPGATOURRadio.
SiriusXM's set will showcase live shows hosted by some of
the most enlightening and entertaining voices in golf including
Bob Ford, Hank Haney, David Leadbetter, Golf Channel's
Michael Breed, Chris DiMarco, John Maginnes, Carl Paulson,
Frank Darby, Brian Crowell, Matt Adams, Brian Katrek, Ben Shear,
Greg Warmoth and Taylor Zarzour.
SiriusXM will also present two "Town Hall" events from the
PGA Forum Stage at the Convention Center.
On Wednesday, Jan. 25 at 12:00 p.m. ET, legendary
college football coach and avid golfer Lou Holtz will join
PGA of America CEO Pete Bevacqua, who was a
member of the Notre Dame football team when Holtz
was head coach, for a special SiriusXM Town Hall
discussion in front of a live audience. The show will
be recorded and will air nationwide on SiriusXM PGA
TOUR Radio on Wednesday night at 10:00 p.m. ET.
On Thursday, Jan. 26 at 12:00 p.m. ET, SiriusXM's
"Teachers Town Hall" will happen on the PGA Forum
Stage featuring several of the game's most esteemed
instructors – Hank Haney, David Leadbetter, Jim
McLean and Golf Channel's Michael Breed. Debbie
Doniger will host the discussion and the instructors
– who are all SiriusXM hosts – will answer questions
from the audience. The show will air nationwide on
SiriusXM PGA TOUR Radio on Thursday night at
8:00 p.m. ET.
"We look forward to bringing SiriusXM listeners
from around the country inside golf's showcase
industry event, where our hosts will share their
impressions on the game's newest equipment,
technology and more," said Scott Greenstein,
SiriusXM's President and Chief Content Officer.
"With a schedule featuring PGA of America CEO
Pete Bevacqua and many of the game's best
teachers and experts, our audience will get special
insight into the topics and trends emerging in the
game now and in the future."
SiriusXM PGA TOUR Radio Schedule from the
PGA Merchandise Show: (All times ET)
Tuesday, Jan. 24 – PGA Show Demo Day
7 a.m. – 9 a.m.: Fairways of Life with Matt Adams (live)
9 a.m. – 10 a.m.: A New Breed of Golf with Michael Breed (live)
10 a.m. – 11 a.m.: Hank Haney Golf Radio with Hank Haney
11 a.m. – 1 p.m.: Inside the Ropes with Carl Paulson and Dennis Paulson (live)
1 p.m. – 2 p.m.: Opinionated with Chris DiMarco and Greg Warmoth
3 p.m. – 4 p.m.: On Course with Frank Darby and Brian Crowell
4 p.m. – 5 p.m.: Golfers Edge with Debbie Doniger and Ben Shear
5 p.m. – 7 p.m.: On Tap with Brian Katrek and John Maginnes
Wednesday, Jan. 25 – PGA Merchandise Show
7 a.m. – 9 a.m.: Fairways of Life with Matt Adams (live)
9 a.m. – 10 a.m.: A New Breed of Golf with Michael Breed (live)
10 a.m. – 11 a.m.: Hank Haney Golf Radio with Hank Haney (live)
11 a.m. – 1 p.m.: Inside the Ropes with Carl Paulson and Dennis Paulson (live)
12 p.m. – 1 p.m.: SiriusXM's Town Hall with Lou Holtz and Pete Bevacqua
(live on stage, taped for later airing)
1 p.m. – 2 p.m.: The Starter with Taylor Zarzour (live)
2 p.m. – 3 p.m.: Callaway LIVE with Amanda Balionis and Jeff Neubarth (live)
3 p.m. – 4 p.m.: Playing for Pride with Bob Ford and Taylor Zarzour (live)
5 p.m. – 7 p.m.: On Tap with Brian Katrek and John Maginnes (live)
NEW YORK, Jan. 17, 2017 /PRNewswire/ --
SiriusXM announced today that it plans to release
full-year and fourth quarter 2016 financial and operating
results on Thursday, February 2, 2017.
SiriusXM will hold a conference call at 8:00 am ET
the same day to discuss these results. Investors and
the press can listen to the conference call via the
company's website at investor.siriusxm.com.
SiriusXM will hold a conference call at 8:00 am ET
the same day to discuss these results. Investors and
the press can listen to the conference call via the
company's website at investor.siriusxm.com.
About SiriusXM
Sirius XM Holdings Inc. (SIRI) is the world's largest radio company measured by revenue and has more than 31.3 million subscribers. SiriusXM creates and offers commercial-free music; premier sports talk and live events; comedy; news; exclusive talk and entertainment, and a wide-range of Latin music, sports and talk programming. SiriusXM is available in vehicles from every major car company and on smartphones and other connected devices as well as online at siriusxm.com. SiriusXM radios and accessories are available from retailers nationwide and online at SiriusXM. SiriusXM also provides premium traffic, weather, data and information services for subscribers through SiriusXM Traffic™, SiriusXM Travel Link, NavTraffic®, NavWeather™. SiriusXM delivers weather, data and information services to aircraft and boats through SiriusXM Aviation, SiriusXM Marine™, Sirius Marine Weather, XMWX Aviation™, XMWX Weather, and XMWX Marine™. In addition, SiriusXM Music for Business provides commercial-free music to a variety of businesses. SiriusXM holds a minority interest in SiriusXM Canada which has approximately 2.8 million subscribers. SiriusXM is also a leading provider of connected vehicles services, giving customers access to a suite of safety, security, and convenience services including automatic crash notification, stolen vehicle recovery assistance, enhanced roadside assistance and turn-by-turn navigation.
This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "believe," "intend," "plan," "projection," "outlook" or words of similar meaning. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.
The following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: our substantial competition, which is likely to increase over time; our ability to attract and retain subscribers, which is uncertain; consumer protection laws and their enforcement; the unfavorable outcome of pending or future litigation; the market for music rights, which is changing and subject to uncertainties; our dependence upon the auto industry; general economic conditions; the security of the personal information about our customers; existing or future government laws and regulations could harm our business; failure of our satellites would significantly damage our business; the interruption or failure of our information technology and communications systems; our failure to realize benefits of acquisitions or other strategic initiatives; rapid technological and industry changes; failure of third parties to perform; harmful interference to our service from new and existing wireless operations; our failure to comply with FCC requirements; modifications to our business plan; our indebtedness; our principal stockholder has significant influence over our affairs and over actions requiring stockholder approval and its interests may differ from interests of other holders of our common stock; and impairment of our business by third-party intellectual property rights. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our Annual Report on Form 10-K for the year ended December 31, 2015, which is filed with the Securities and Exchange Commission (the "SEC") and available at the SEC's Internet site. The information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication.
Pandora gains after layoffs,
which is just silly:
Published: Jan 14, 2017
10:34 a.m. ET
Pandora Media Inc. is laying off employees just
as the internet radio company is about to launch a
new streaming service, Pandora Premium.
Wall Street’s response? A share gain of
more than 6%, which is ridiculous.
Pandora P, +6.33% managed to cloud the bad news
by also reporting that it beat its own forecast for
revenue in the fourth quarter, but investors should
remember that Pandora’s guidance for the quarter was
well below Wall Street expectations. In fact, Pandora had
to reduce its full-year revenue guidance in both July and
October, so it is about time the company managed to
exceed repeatedly reduced expectations.
Wall Street typically likes corporate layoffs, but analyst
Anthony DiClemente noted the issues with this move:
It will already be “difficult to execute” the launch of a rival
to entrenched competition like Spotify and Apple Music,
and “cost-cutting is rarely a viable path to sustainable
growth” for an internet growth company.
The Nomura Securities analyst noted the layoffs of
7% of the company’s U.S. workforce could ultimately
benefit Pandora’s profit margin, but Pandora will actually
have to show a profit for that to matter. New services are
key to the plan to get to profitability, and employees are
needed to ensure their success.
Pandora is set to launch Pandora Premium later this
quarter, it confirmed in its news release, and said
Pandora Plus—a new ad-free $5-a-month version
of its core radio offering—attracted 365,000 new
subscribers by the end of December. That number
of net adds was well below the 800,000 estimate
of Raymond James’s Justin Patterson, who noted
that his estimate was higher than most. Patterson
is concerned about how much Pandora will need to
spend to “attract subscribers in the competitive
streaming music industry.”
Starting that push off with cuts is not the best
way to ensure that the new service will be able to
satisfy the needs of music lovers. And it isn't just
lower-rung engineering and ad-sales talent that
Pandora is losing: Chief Operating Officer Sara
Clemens stepped down last month, and Pandora
is still looking for a chief financial officer to replace
Mike Herring, who remains president but is
relinquishing the CFO role.
According to FactSet, 50% of analysts on Wall
Street rate Pandora a buy, 41% rate it a hold,
and 9% rate it underperform or sell. In the past
year, there has been a lot of speculation that the
company would be acquired, with Sirius XM
Holdings SIRI, +0.66% often cited as the most
likely contender. But comments by a Sirius
executive at a Citigroup conference during CES
last week were interpreted as throwing cold water
on those hopes, and fueled a 4% drop in
Pandora’s shares.
Unless investors want to bet that Pandora will be
acquired, they should consider staying on the
sidelines, waiting to see if the company can
reverse a decline in its user base and be the first to
make a profitable business out of internet music,
especially after Friday’s gains.
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