This Analyst Thinks Pandora's Ticketfly Acquisition Will Be A Disaster

• Pandora Media Inc (NYSE: P) announced it would acquire Ticketfly, Inc., a live events technology company.
• The aim was creating "the definitive music platform for connecting fans, artists and event promoters."
• Benzinga spoke to Wedbush's Michael Pachter on the issue.

On October 7, Pandora announced it had entered an agreement to acquire Ticketfly, a provider of ticketing and marketing software for event venues and promoters across North America. The transaction was valued at roughly $450 million.

"This is a game-changer for Pandora – and much more importantly – a game-changer for music," said Pandora CEO Brian McAndrews. "Over the past 10 years, we have amassed the largest, most engaged audience in streaming music history. With Ticketfly, we will thrill music lovers and lift ticket sales for artists as the most effective marketplace for connecting music makers and fans."

Related Link: 'Serial' Podcast And Ticketfly News Gives Pandora Stock A Lift, But Is The Move Justified?

Pachter’s Take

Wedbush's Michael Pachter told Benzinga the Ticketfly acquisition "will be a disaster" for Pandora, noting that the sell side tends not to think of Pandora M&A from a strategic standpoint.

Moreover, Pachter explained his estimates suggest Ticketfly users overlap only about 3 percent with Pandora users.

Pachter went on to look into the upside in Pandora, which he classified as a "dead cat bounce." To conclude, he pointed out that the "Serial" news "has no fundamental impact" on the company’s business.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.