Pandora IPO Filing is Music to Investors’ Ears
Oakland, CA-based Pandora, the vastly popular personalized streaming music service, filed an S-1 form with the Securities and Exchange Commission today in preparation for an initial public offering this year. In the filing, the company said it hopes to raise as much as $100 million in a sale of common stock, and revealed that it is nearly profitable: It suffered a net loss of just $0.3 million in the first nine months of 2010, against revenue of $55.2 million. (The company earns money primarily on advertising through the Pandora website, though it also collected $5 million in fiscal 2010 for premium subscription services.) Venture backer Crosslink Capital owns the largest chunk of Pandora shares (23 percent), according to the filing; Walden Venture Capital, Greylock Partners, Labrador Ventures, the Hearst Corporation, and GGV Capital also stand to profit from the offering. Morgan Stanley and J.P. Morgan will underwrite the IPO.