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Should Pandora Be Acquired?

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Should Pandora Be Acquired?

Aron Pinson was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

LPS Financial Co-Founder and Chief Investment Officer Aron Pinson discussed Pandora Media Inc (NYSE: P) on the show.

Pinson felt that Pandora should “be part of a much bigger business.”

Apple Inc. (NASDAQ: AAPL) made a purchase similar to Pandora with Beats, Pinson noted, while Microsoft Corporation (NASDAQ: MSFT), Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon.com, Inc. (NASDAQ: AMZN) and Facebook Inc (NASDAQ: FB) were larger, “ecosystem focused” companies in Pinson’s view.

A company like Pandora would help support a larger company’s ecosystem by driving traffic to other services while Pandora’s stand-alone business model “doesn’t work,” according to Pinson.

Pinson thought Pandora was a great product, but would not have to make money in a larger ecosystem and that consolidation was inevitable over time.

Pandora Media recently traded at $18.28, down 0.16 percent.

Listen to the show here:

 

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