Pandora Is Asking Record Labels For Cash, Better Rates
Battered by investors, Pandora has gone hat in hand to the major labels, asking for better rates and direct investment in the music streamer. The problem for Pandora, is that it is coming from a very weak position.
Pandora executives have asked the major record labels for cash or better deal terms to stop ongoing losses and reduce pressure from impatient shareholders, sources tell Bloomberg.
The labels seems unlikely to agree.
Its not that Pandora is short of cash. But rather, activist shareholders led by Corvex and their lone potential buyer SiriusXM, are tired of slipping users stats, increased competition and royalty rates that make the music streamer deeply unprofitable.
The company lost $345 million last year, more than double its losses from the prior year.