FAYETTEVILLE, Ark., July 23, 2013 /PRNewswire-iReach/ -- EquityNet (www.equitynet.com) has released a new free research report on Pandora Media, Inc. that includes 5-year projections, a valuation analysis, a comparison to other media companies, and a complete overview of the company. The full research report on Pandora can be accessed for free at:
The research report on Pandora estimates the company's valuation and used EquityNet's patented analytical software and new detailed 5-year projections to estimate a market value for Pandora Media of $1 billion.
Many market participants are concerned about the increasing share of revenue that Pandora must pay artists and record labels through its royalty agreement with SoundExchange. Under the terms of the previous deal with SoundExchange, Pandora's rates were lowered by 50% in exchange for 25% of its U.S. revenue. Pandora's royalty agreement with SoundExchange must be renegotiated in 2015, which is a well-known risk factor for Pandora and a likely cause of the high market short position in the stock.
Advertising compromises near 90% of Pandora's total revenue and with the current SoundExchange agreement, Pandora has a scaling problem. As Pandora grows its users and listening hours, its royalty costs also grow at a constant rate. To date, Pandora has been unable to grow their total advertising revenue at a rate that exceeds the growth in the increasing listener hour royalties. The companies which Pandora lists as competition in the internet advertising space include Google, Facebook, and Yahoo.
In addition to detailed 5-year financial projections and a valuation analysis, the EquityNet research report provides a complete overview of Pandora. The report details Pandora's products, intellectual property (patents), target markets, competition, management team, and capitalization history. The report even compares Pandora to other media companies on a risk and return basis.
The free research report on Pandora was produced by EquityNet analysts using the Company's patented Enterprise Analyzer™ software. Enterprise Analyzer is the only software system that analyzes businesses and estimates business valuation, risk, investment return, undercapitalization, and many other business scoring factors. Enterprise Analyzer also compares and validates dozens of business projections and assumptions based on EquityNet's peer benchmarking database, the largest of its kind in North America.
EquityNet is a leading equity crowdfunding platform and pioneer of crowdfunding technology with multiple patents granted. EquityNet provides investment access to thousands of private companies that are seeking hundreds of millions in capital. At EquityNet, investors are empowered with the only patented screening and analysis software in the industry. EquityNet is used by thousands of entrepreneurs and investors and has led to $207M in funding across North America. For more information, visit www.equitynet.com
Media Contact: Adam Vanderbush, EquityNet.com, 866.542.3638, firstname.lastname@example.org
News distributed by PR Newswire iReach: https://ireach.prnewswire.com