Pandora stock gained 0.65% to $9.36 on Monday, while Verizon was essentially flat at $46.39.
The music streaming company, which has a $2.25 billion market cap, would sit alongside AOL, soon-to-be-acquired Yahoo! (YHOO) and other digital brands in Verizon's Oath unit.
"I don't know what they would get out of it to have partial ownership because obviously it would not become exclusive to Verizon customers," said Roger Entner of mobile consultancy Recon Analytics. "It might help them to become the exclusive ad service for Pandora. That should be part of that decision."
AOL boss Tim Armstrong wants Oath to grow from from 1.3 billion consumers on its platform to 2 billion by 2020, generating $10 billion to $20 billion in sales by 2020. Pandora would add about $1.6 billion in projected sales this year, according to analysts surveyed by FactSet. The streaming service reported close to 80 million active users in May.
Liberty Media has a majority stake in satellite radio group Sirius XM ( SIRI - Get Report) , and has been discussed a suitor for Pandora since CEO Greg Maffei reportedly made an informal offer of $15 per share last July.
Pandora said that KKR (KKR - Get Report) would invest $150 million on May 8. Outgoing board member Jim Feuille said that the agreement essentially gave Pandora 30 days to shop itself before the close of KKR's investment, which is expected by June 8.
Verizon declined to comment on its reported interest in the music streaming company. Pandora did not immediately comment.
Before backing Pandora, Recon Analytics' Entner suggested that Verizon should study Sprint's investment in Jay Z-backed streaming service Tidal for a reported $200 million earlier this year. "When they dropped the $200 million on Tidal what did they get for it other than help Jay Z cash out?" he asked.
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