If buzz around the Internet is to be believed, Pandora will soon announce an IPO. That’s a change from not long ago when Pandora‘s Founder Tim Westergren was saying there was no IPO in the foreseeable future.
But things change, and with their audience rocketing from 40 million to 75 million in a year, I guess Tim and CEO Joe Kennedy, along with their investors, may be thinking this is a good time to go public.
With the amazing growth in listeners and popularity, Pandora must be under pressure to expand as quickly as possible – device manufacturers from radios to televisions to cars are lining up to integrate. That’s all a great thing, making Pandora more and more ubiquitous, but each project requires a manager and developer plus time and attention and all that takes money.
In addition, licensing issues mean that as Pandora’s audience grows, so does its royalty liability. Cha-ching.
And lastly, as it is prone to do around the web, the buzz around Pandora will inevitably fade. There are lots of great streaming services out there, someday someone will de-throne Pandora, making now a great time for an investment offering.
Pandora has gotten lots of people to listen to Internet radio and lots of business folks to take notice. Their IPO, rumored to be for $100 Million will bring more attention to to Internet radio. May they thrive..