Pandora Media Inc. is exploring a potential minority investment by an unnamed strategic investor in lieu of its previously announced deal with KKR & Co. LP, the company confirmed June 8.
Pandora and KKR agreed to a brief extension of the pre-closing period on the earlier deal to allow Pandora time to explore the alternative investment and Pandora's right to terminate the KKR deal. All conditions on the closing of the $150 million investment by KKR have been met and both parties are prepared to close the deal if Pandora determines that the KKR investment continues to be in the best interest of its stockholders. The 30-day period allowing Pandora to explore other offers was set to expire June 8 before the company and KKR agreed to an extension.
Reuters reported June 8 that Sirius XM Holdings Inc. is considering an investment in Pandora after talks to fully acquire the streaming radio company fell apart. According to the report, Sirius XM is in talks for a private investment in public equity, which involves the sale of a company's shares in a private offering, instead of a public secondary offering.
The New York Post earlier reported that Verizon Communications Inc. was mulling a $100 million investment in Pandora as well.