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.