Pandora may be on the hunt for a new influx of cash to support its expansion. Claire Atkinson of the New York Post reported that Pandora is looking to work with a private equity firm to obtain more funds. Sources said that Pandora has had talks with firms including Providence Equity Partners, Silver Lake and KKR. Pandora’s mid-tier and full on-demand services recently rolled out in the United States, and the core service is still only in the U.S., Australia, and New Zealand. To roll out any of those platforms to more places will likely entail heftier royalty payments on top of the standard costs of operating in more places.
Atkinson also reported that Pandora has been in talks with the labels to take an equity stake in the company, a setup similar to its rival Spotify. “There are only so many slots for successful streaming services,” an unnamed source told the Post. “A strategic buyout or a partnership is inevitable.”