Pandora’s NYSE_traded stock jumped over seven percent on Friday, an unexpected upward spike generally attributed to buyout rumors. Even as those rumors circulated, they were discredited by some analysts.
Wedbush Securities analyst Michael Pachter was quoted saying he thought the acquisition chatter was started by traders hoping to leverage the rush to buy into a takeover target.
Other observers cited an unsubstantiated Twitter rumor, as possibly enough to move the market.
It is not the first time that pandora stock has been stalked by takeover frenzy. The stock’s relatively low current price (trading at almost exactly half of its $35 value one year ago) arguably put the company at an attractive valuation for a buyer. At the same time, there is uncertainty about the business during 2015, as the Copyright Royalty Board takes the entire year to set new music licensing rates for the next five years. With the future cost of doing business unknown, it might not be an ideal time to acquire.