Pandora Secures $150 Mln In Financing, To Review Strategic Alternative

Shares of Pandora Media Inc. rose in Monday's extended session after the internet-radio company announced it secured an additional $150 million from KKR and said it will consider various strategic alternatives, including a sale, 30 days before the financing deal closes. Separately, Pandora reported its first-quarter loss widened to $132.3 million, or 56 cents a share, from $115.1 million, or 51 cents a share, a year earlier. On an adjusted basis, the company would have lost 24 cents a share. Revenue rose to $316 million from $297.3 million. Analysts surveyed by FactSet had forecast a loss of 33 cents a share on revenue of $318 million. Total subscribers rose to 4.7 million from 3.9 million a year ago. Pandora expects revenue in a range of $360 million to $375 million in the second quarter, below the $389 million projected by analysts. For 2017, the company projected revenue of $1.5 billion to $1.65 billion versus average estimate of $1.62 billion. Shares initially fell after hours on earnings but rebounded to gain over 3% on news that Pandora may consider a sale. [Updated to reflect reversal in stock price.]