Ah, the ongoing, never-ending battle that is the music streaming world. We all know too well that platforms like Soundcloud, Pandora, Spotify and Apple Music have been in an ongoing battle to keep up with each other, stay attractive to users, and – of course – remain profitable. As the music industry shifts, thus does consumer needs and interests – and the struggle to keep us has taken a toll on many a platform.
Well, the battle may finally lose one competitor, as Pandora is exploring “strategic alternatives” – in other words, they’re looking for a buyer. CNBC reported that KKR, an investment firm, “plans to invest $150 million in Pandora in exchange for new shares of preferred stock, a deal that will close in 30 days.” This investment, sources believe, means that there is higher probability of sale.
With this new deal with KKR, two directors will leave Pandora’s board and KKR’s Richard Sarnoff will join. If Pandora does indeed succeed within 30 days, they will be required to pay KKR $15 million.
Interestingly enough, this potential sale comes at a time where Pandora is one of the most popular apps on the market. CNBC notes that the app has been the No. 1 grossing music app every day for the past six months in the App Store.
This leaves us to question: will this sale – if it pulls through – be the end of an era?