Despite all the hoops it jumped through to get it, Pandora may sell its terrestrial radio station. A filing made to the FCC at the start of the week stated that Pandora is reevaluating whether it wants to continue being a broadcaster. The document requested a delay for a shareholder vote on the issue, which was required by the initial purchase relating to rights for the company’s board of directors.
“Pandora is considering whether it intends to remain a broadcaster or instead will divest KXMZ,” the filing said. “For this reason, Pandora does not want to request its shareholders at this time to make substantial changes to Pandora’s organizational documents.”
The acquisition of South Dakota’s KXMZ-FM station was one of the highlights in Brian McAndrews’ tenure as Pandora’s CEO. (Founder Tim Westergren reassumed the top role this week.) Pandora faced legal challenges from ASCAP and the FCC in obtaining the station. However, the next month, the company’s application for lower royalty rates due to its terrestrial broadcaster status was denied.