Pandora Buys Ticketfly for $450 Million
Pandora's platform is already being used to drive ticket sales. Now it owns some of those transactions.
The leading Internet radio company is diversifying its portfolio by entering the ticketing business. Pandora announced Wednesday it has acquired San Francisco-based ticketing company Ticketfly.
The purchase price of $450 million, a nearly even split of cash and stock, is subject to certain price adjustments.
"This is a game-changer for Pandora -- and more importantly -- a game-changer for music," said Brian McAndrews, Pandora CEO, in a statement.
The combination of two seemingly unrelated businesses fits into Pandora's Artist Marketing Platform and efforts to use its platform to connect listeners with their favorite artists. Pandora is already allowing some artists to send audio messages to targeted fans. These messages can include a call to action such as a link to buy tickets to an upcoming concert in their area.
The purchase of Ticketfly will allow Pandora to own the transaction from artist message to ticket purchase. The deal will also give Pandora additional data that can improve the music and concerts recommended to listeners.
"With Ticketfly, we will thrill music lovers and lift ticket sales for artists as the most effective marketplace for connecting music makers and fans," said McAndrews.
Ticketfly has raised $87 million since forming in 2008, including $50 million in July of this year. It generated more than $500 million in gross ticket value in 2014. Its clients include the Pitchfork Music Festival and 9:30 Club in Washington D.C.