Northern,WI 9/20/2012 (BasicsMedia) — Apple (NASDAQ:AAPL): Most Likely to Buy Pandora (NYSE:P) and this is pure speculation on my part, but it makes sense for Apple to buy versus build in the internet radio space. Pandora has a solid subscriber base and it would take Apple too long to equal this and squash Pandora. They have other things to do …like ruling the world!!! I see the day where Pandora is gone and Apple Radio is here. Pandora would be better off selling to Jeff Bezos at Amazon or Larry Page at Google. If you use Pandora enjoy it now because it will be a far cry from what it is today..and I do not expect it will be free
Spending $2B to buy an internet Radio company makes sense when your stock is trading at the highest levels ever. As the CEO you use your stock as currency to make aquisitions versus spending cash in the bank. This is a CEO call and gobbling up anyone who could be a competitior has worked in down economic cycles when the host stock price is higher than market averages. It is often a deft move by management, and they have teams of internal staff working on developing strategy to fund, aquire and basicly build or buy. No smart CEO with all the cards can sidestep this requirement. The reason is simple…revenue growth can only take you so far, you need to grow by aquisition.
Pandora knows they will get aquired by someone and staff hopes it’s Apple not Amazon or Google. I wish I would have started an Internet Radio site!! Dam it … I could have banked $200M like the collective management team will collect, and they will contribute to the combined company from an outdoor table in France by cell phone.
Apple will get rid of managemnt in an eloquent way, but they will have little to do with the growth or day to day operations of the combined entity..they know this and Apple knows this.
Pandora would be better off being aquired by Google (NADAQ:GOOG) because they would be more involved with their baby, and they would be MUCH better off if they were aquired by Amazon (NASDAQ:AMZN). Jeff Bezos could integrate Pandora much more effectively than Apple, where they will get lost in the morass of other aquistions. At some point it will be Apple Radio and Pandora will go away and be long forgotten.
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