Music streaming service Pandora is reportedly considering selling its Ticketfly business if it cannot attract a buyer for the entire company.
Ticket operator Ticketfly was the star of Pandora’s first quarter, with results released last week showing that it generated a 25 per cent year-on-year surge in service revenue to $27.8m (£21.5m/€26.0m).
However, Pandora also last week admitted that it is looking to be bought out as it revealed a $150m investment from private equity investment fund KKR.
“We have positioned the company to evaluate any potential strategic alternatives, including a sale, in the 30 days before the financing is set to close,” said outgoing board member James M. P. Feuille on May 8.
If a buyer cannot be found, Bloomberg reports the company will consider selling the ticketing operator it bought for $450m in 2015. Money recouped would allow Pandora to focus on its core streaming business and its new on-demand Premium service.
The purchase of Ticketfly was considered to be a response to counter Spotify and Apple Music, and give it a convenience that was not offered by its surging rivals.
Ticketfly now accounts for around nine per cent of Pandora. The parent company’s total turnover in the three months to March 31 was $316m, which was up six per cent year-on-year, with losses widening from $115.1m to $132.3m.
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