Pandora Thinks Its IPO Could Net It $33 Million
Pandora is hoping its IPO will raise a total of about $141 million. If you've read about the IPO in the news, that's the number being used as the total amount of proceeds the company will raise. But not all of that will end up going toward the company's expansion. In fact, Pandora estimates it will net about $33 million.
The company believes its IPO offered will be priced at $7 to $9 per share, according to the latest update of its S-1 SEC filing. With 13.7 million shares offered, and at that price range, the IPO would raise a maximum of $141.6 million. The company has applied to trade its shares on the New York Stock Exchange under the symbol "P."
But Pandora's take from the IPO would be far less than $141.6 million. The company is selling only 5 million of the 13.7 million shares being offered in the IPO. The remaining 8.7 million shares are being sold by directors, officers and the investors who will use the IPO to cash out of their investment in the company. CTO Tom Conrad, for example, is offering about 247,000 of his 2.56 million shares. The Heart Corporation is offering 4.37 million of its 8.73 million shares.
So what will Pandora take in and add to its balance sheet? At 5 million shares at $9 per share, and after subtracting IPO-related registration fees, the IPO should put around $33 million toward the company's expansion and preferred stock dividends (or $49 million if the underwriters' over-allotment option is exercised in full, which happens when an underwriters sells additional shares due to higher-than-expected demand).
Beyond the IPO, however, Pandora can raise money from additional public offerings. The company has 133.5 million shares issued and outstanding. ( Pandora's S-1 SEC filing)
No Music, Concerts or Live Nation in Groupon's SEC Filing
A few things were missing from Groupon's SEC filing related to its IPO: any mention of music, concerts or Live Nation, with which it has partnered to create the concert ticket deal service Groupon Live. Groupon has done many concert ticket deals, and some digital album promotions as well.
The absence of music is not a surprise, however. Even thought the S-1 document has hundreds of pages, it does not delve into every partnership and product category. But it does explain the importance of partnerships to expand its presence, such as this section:
"Since May 2010, we have made 13 acquisitions and we have entered into several agreements with local partners to expand our international presence. We have also signed partnership agreements with companies such as eBay, Microsoft, Yahoo and Zynga, pursuant to which these partners display, promote and distribute our deals to their users in exchange for a share of the revenue generated from our deals. We intend to continue to expand our business with strategic acquisitions and business development partnerships." ( Groupon's S-1 SEC filing)
Ticketmaster's LiveAnalytics Gets a Thumbs-Up in Jersey
Ticketmaster's new dynamic pricing model gets a good write-up from the New Jersey Star-Ledger, and there are a couple items in there worth noting. First is the price of the best seats. "Generally we see the really good seats are underpriced," says John Forese, vice president of Ticketmaster's LiveAnalytics division. But the middle of the venue could be overpriced, and the system will allow the venue and promoter to adjust accordingly.
Also of note is the way Ticketmaster is researching the best ways to price a concert after it has gone on sale. "We are looking at sales rates of ticket prices on the secondary markets, looking at web traffic," Forese says, adding that the ticketing program incorporates "all those inputs" to suggest possible pricing changes by a client.
The launch of Ticketmaster's LiveAnalytics division was announced back in March. The goal is "turning Ticketmaster's global fan database into rich data analytics products that provide clients fan insights for their business," according to the press release. Forese was previously the CEO of Motally, an analytics service for mobile phones that was acquired by Nokia last year. ( Star-Ledger, via TicketNews)
Newsflash: A New Record Store Opens!
-- Music retail is such a paradox. If times are so tough, then why are so many new stores opening all the time? Perhaps the Facebook page of Permanent Records offers a clue: "You can't put your arms around an MP3," it states, neatly paraphrasing the late Johnny Thunders.
Permanent Records' new Los Angeles location is an extension of the original Chicago indie record store, which opened there in 2006. Owners Lance Barresi and Liz Tooley have moved to the Eagle Rock area of Los Angeles and are opening a second store on June 4. Permanent Records has grown to include a record label (with 27 releases) and a mail-order division. According to the Los Angeles Times, the Eagle Rock store will carry vinyl records, CDs, tapes, turntables, accessories, zines and DVDs. ( Los Angeles Times)