Pandora, Investor Crosslink To Sell $450M In Stock

Pandora and it's largest investor will be selling 14 million shares of stock which could net a total of $450 million. Pandora shares have doubled so far this year, but after today's announcement fell 4.5% to $23,90 in after hours trading. 

Pandora will offer 10 million shares at Friday's closing price of $23.99, while venture-capital firm Crosslink Capital will offer another 4 million shares. Crosslink, which is Pandora's
largest shareholder, will reduce its stake to 13.4% from 16.5%.

The Pandora portion of the sale could net the company close to $275 million, three times the $91+ million it earned from it's IPO. The money could come in handy as Pandora battles increased competition from Apple's iTunes Radiom, which launches this Wednesday, and other streaming music services.

The managers of the proposed offering will be J.P. Morgan and Morgan Stanley. Wells Fargo Securities, BofA Merrill Lynch, BMO Capital Markets, Canaccord Genuity, Needham & Company, Pacific Crest Securities, Piper Jaffray and William Blair will act as co-managers.