Pandora (P) Stock Surges Before Market Close, Hires Centerview for Stategic Options
NEW YORK (TheStreet) -- Shares of Pandora Media (P) closed up by 5.86% to $13 on Monday after Bloomberg reported that the company hired Centerview Partners to advise it on strategic options.
The music streaming company is said to have hired the bank to help placate activist investor Corvex Management, Bloomberg said.
The bank will be helping Pandora discuss future plans with Corvex and may eventually run a sale process.
Corvex, which has a 9.9% stake in Pandora, has been pressuring the company to explore sale options. Last week the company rejected a roughly $15 per share bid from Liberty Media (LMCA).
Representatives for Corvex and Pandora declined to comment to Bloomberg.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate PANDORA MEDIA INC as a Sell with a ratings score of D. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: P
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