Pandora extends pre-closing period in KKR investment, exploring alternatives
Pandora Media Inc. said on Thursday it is extending the pre-closing period before closing its investment deal with private-equity firm KKR. Shares of Pandora rose as much as 2% in premarket trade. The internet music streaming and radio company said it has met all conditions necessary to close its $150 million KKR investment and that both parties are "prepared to close immediately." The extension, however, could mean Pandora is looking to capture a better strategic deal. When Pandora secured the KKR investment in May, it said it would first explore strategic alternatives before closing the deal. Liberty Media Corp.-owned satellite radio company SiriusXM has shown interest in making a bid for Pandora, but Liberty Chief Executive Greg Maffei had said previously that Pandora was overvalued and that he would consider a bid if the company were trading at $10 a share. Pandora shares closed at $8.52 on Wednesday. Pandora did not say how long the pre-closing period would be extended for, but if the investment is still the best option for the company and its shareholders following the period, it will close immediately, Pandora said. Pandora shares have declined nearly 35% in the year to date, while the S&P 500 index is up nearly 9%.
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