Printed from http://www.electronista.com

SEC filing by Pandora casts doubt on future profitability

updated 08:26 pm EDT, Mon September 16, 2013

Company seeking sale of 14 million company shares for $230.8 million

In a SEC filing, music streaming company Pandora has warned that its business has slowed, and is proposing an offering of 14 million additional company shares to generate funds for capital expenditures. The company believes that it will not be able to maintain "the rapid growth" that is has been experiencing, and losses will grow in the short term.

The move comes a week after Pandora named Brian McAndrews as CEO. The company is expecting to generate $230.8 million from the sale of the new stock it wishes to issue. It will use the money to invest to support future growth. It claims to need the money for "general corporate purposes, including working capital and capital expenditures."

Pandora continues to claim that unfair music licensing fees are the biggest obstacle to the company, both in the short and long term. It has acquired a terrestrial music station to try to help it qualify for lower streaming rates, but its purchase of the station is being challenged by ASCAP.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

D-Link Wi-Fi Smart Plug

Home automation fans have been getting their fair share of gadgets and accessories in the last few years. Starting with light bulbs, a ...

Razer Kraken Pro headset

Gaming headphones are a challenge to get right, for a long list of reasons that are unique to the consumer buying them. Some shoppers ...

Patriot Aero Wireless Mobile Drive

Regardless of how large a tablet you buy, you always want more space. There's always one more movie or another album you'd cram on, if ...

Sponsor

toggle

Most Commented

 
toggle

Popular News