NEW YORK (TheStreet) -- Pandora Media (P) signed separate licensing agreements with two performance rights organizations, ASCAP and BMI, to stream more than 20 million songs from their music catalogs.
The terms of the deals were not disclosed, but Pandora will get more rate certainty from the agreements.
"These collaborative efforts with the leading performance rights organizations, as well as our recent direct deals with several music publishers demonstrate our progress in working together to grow the music ecosystem," Pandora CEO Brian McAndrews said in a statement.
Additionally, Pandora agreed to drop its appeal of the ruling of the BMI rate case. BMI sued Pandora in 2013 for higher licensing fees and won the case in a ruling that Pandora appealed in May, Reuters reports.
Pandora stock is down by 0.21% to $14.18 in late morning trading on Tuesday.
Recently, 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 and generally disappointing historical performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 4143.4% when compared to the same quarter one year ago, falling from -$2.03 million to -$85.93 million.
- The share price of PANDORA MEDIA INC has not done very well: it is down 12.80% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- PANDORA MEDIA INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This year, the market expects an improvement in earnings ($0.11 versus -$0.15).
- Compared to other companies in the Internet Software & Services industry and the overall market, PANDORA MEDIA INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for PANDORA MEDIA INC is rather high; currently it is at 53.47%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -27.58% is in-line with the industry average.
- You can view the full analysis from the report here: P