Takeover rumors pushed Pandora shares up over 11% in Friday morning. Although previously empty rumors bring a "crying wolf" element to current rumors, Pandora shares jumped 11.3% to $17.07 Friday morning and had eased down to $16.58 by 1:00 Eastern time.
Twitter has been filled with takeover talk on Friday. The tweets lack specific information and only mention that rumors have been swirling in the investment community. One tweet said the Pandora had hired Goldman Sachs after receiving a bid of $25 per share.
"By policy, we don't comment on rumor or speculation," a Pandora spokesperson tells Billboard.
The rumors could be the result of a whisper campaign by owners of call options taking advantage of Pandora's recent dip to $14.50. Many analysts have price targets of $25 or more. The wide gap between the current price and the price targets may lead some people to believe the company is undervalued. In any case, some investors clearly believe the rumors have some credibility.
Takeover rumors seem to be standard fare for Pandora. In August, Rumors were swirling that Pandora was being eyed by Apple, Google and Yahoo. In 2012, Bloomberg floated the idea that Pandora might be an attractive acquisition target for Google, Amazon and Clear Channel (now iHeartMedia).