Pandora Files To Go Public

#1

Post by pitdesi » Fri, Feb 11, 2011, 10:39 PM UTC

Pandora Files To Go Public
techcrunch.com

Re: Pandora Files To Go Public

#2

Post by pitdesi » Fri, Feb 11, 2011, 10:41 PM UTC

And the IPO frenzy starts heating up... like it's '97

Re: Pandora Files To Go Public

#3

Post by zacharycohn » Fri, Feb 11, 2011, 10:44 PM UTC

I don't know much about the market/strategy behind IPOs. Is it a good idea to IPO if you just lost ~$325k?

I assume they have intelligent reasons behind the IPO - can someone explain the rationale?

Re: Pandora Files To Go Public

#4

Post by brikmaster » Fri, Feb 11, 2011, 10:56 PM UTC

It allows their investors to sell stock and get their money out.

Re: Pandora Files To Go Public

#5

Post by davidu » Fri, Feb 11, 2011, 10:57 PM UTC

pitdesi wrote: post #2

And the IPO frenzy starts heating up... like it's '97

Not really.

Go find a company from '97 that had $70 million in revenue and was breaking even.*

If there is a company, it might have had absurdly inflated ad-based revenue when CPMs were like $30.

Re: Pandora Files To Go Public

#6

Post by pitdesi » Fri, Feb 11, 2011, 11:09 PM UTC

davidu wrote: post #5

pitdesi wrote: post #2

And the IPO frenzy starts heating up... like it's '97

Not really. Go find a company from '97 that had $70 million in revenue and was breaking even.* If there is a company, it might have had absurdly inflated ad-based revenue when CPMs were like $30.

ok, maybe more like 95... Netscape had $80mil in revenues and was close to break even (made a profit in '96) http://www.secinfo.com/dRqWm.8Ae8.htm#49o5

Re: Pandora Files To Go Public

#7

Post by yumraj » Fri, Feb 11, 2011, 11:13 PM UTC

zacharycohn wrote: post #3

I don't know much about the market/strategy behind IPOs. Is it a good idea to IPO if you just lost ~$325k? I assume they have intelligent reasons behind the IPO - can someone explain the rationale?

It's not just about profitability, valuation takes future cash flow into account. So, if the market thinks that Pandora's cash flow would increase without much risk, and they do have healthy revenue, they can have a successful IPO.

Think about Tesla, which is much more in red but had a great IPO.

Re: Pandora Files To Go Public

#8

Post by davidu » Fri, Feb 11, 2011, 11:24 PM UTC

pitdesi wrote: post #6

davidu wrote: post #5

Earlier quoted context omitted.

Not really. Go find a company from '97 that had $70 million in revenue and was breaking even.* If there is a company, it might have had absurdly inflated ad-based revenue when CPMs were like $30.

ok, maybe more like 95... Netscape had $80mil in revenues and was close to break even (made a profit in '96) http://www.secinfo.com/dRqWm.8Ae8.htm#49o5

Netscape absolutely deserved to go public based on any metric. The future could not be predicted based on their inaction and Microsoft's dominance.

Re: Pandora Files To Go Public

#9

Post by davidu » Fri, Feb 11, 2011, 11:25 PM UTC

This company is almost entirely investor owned. Geez.

It's been saved from the brink of death so many times, the actual employees and founders really aren't going to get a tremendous windfall for their efforts.

Re: Pandora Files To Go Public

#10

Post by troymc » Fri, Feb 11, 2011, 11:28 PM UTC

I can't get Pandora in Canada (unless I use a proxy), so I don't really know how it works. I was struck when I read:

"About 86 percent of Pandora’s revenues ($78 million) comes from advertising, the rest ($12 million) comes from subscriptions."

which made me think, wow, Pandora is kind of like a newspaper, magazine, or cable TV network!