Backed by a slate of notable VCs, Pandora Media launched its free Internet radio service in 2005 and has quickly scaled to take a commanding 58% share of the market with 34 million active users. After increasing its deal terms last Friday, Pandora now plans to raise $162 million by offering 14.7 million shares at a price range of $10 to $12. The company had previously filed to offer 13.7 million at a range of $7 to $9. At the midpoint of the proposed range, the proceeds raised should exceed the original terms by nearly 50%, valuing the company at $2.1 billion. Pandora plans to price Tuesday evening and list on the NYSE on Wednesday under the ticker symbol (P). Morgan Stanley, J.P. Morgan, and Citi are the lead underwriters on the deal, which is one of the three deals scheduled to price on this week's US IPO calendar.
Pandora was designed to personalize the online radio listening experience. The company maintains a music catalog of over 800,000 songs spanning 240 genres, with each piece being categorized on up to 450 fundamental attributes in order to craft individualized radio stations based on user preferences. The company began by streaming its ad-supported services to desktops and laptops, however, Pandora has seen strong adoption in mobile devices (currently 60% of listener hours) and maintains partnerships with makers of over 200 "smart" consumer electronic devices.
Read more about the Pandora IPO's risks and outlook.
