Thursday, June 16, 2011

I.P.O. Fever Calms Down for Pandora Media - NYTimes.com

Accentuating the Pandora positive

Still, Pandora’s ability to go public at $16 a share — roughly double its initial target range of $7 to $9 — reflects a robust demand for Internet stocks, particularly those with a large base of users. Pandora is not yet profitable, like many of its peers, but the company has more than 90 million subscribers and is adding a new user about every second.

Demand for Pandora’s initial public offering was also amplified because of limited supply. There is not a flood of Internet companies rushing to market as there was more than a decade ago during the dot-com boom. And those that are going public, are showing restraint. Both Pandora and LinkedIn offered less than 10 percent of their total shares.

I.P.O. Fever Calms Down for Pandora Media - NYTimes.com

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