NEW YORK ( TheStreet) -- Internet radio hot spot Pandora Media is going public.
The Oakland, Calif.-based company filed an S-1 registration Friday with the Securities and Exchange Commission letting regulators and investors know it is looking to do an initial common stock offering to raise around $100 million. Pandora's revenue from advertising sales and partnership subscriptions is solid, but the company has posted a net loss for the past three years, according to the filing. (Its fiscal year ends Jan. 31.)
That may work out for Pandora, but experts say that for small and emerging firms eyeing the public markets, doing an IPO generally requires much more than a need for capital.
"Pandora is still losing money," says Rich Brenner, founder of the Brenner Group, a professional services firm providing financial and management services mainly for tech firms in Silicon Valley. "That is a concern for me."Firms choosing to go public should "have a history of revenue and profit," Brenner says. "The cost of being a public company, the exposure on the public company and the pressure is so great that a company that hasn't made it on its own -- thinking they can