Here’s why Pandora should not get lower rates!
Remember when Pandora used to complain about how royalty costs were over half their revenue? Let’s take a look at their income statement for the last 12 months (“trailing twelve months” or “ttm”) from Yahoo! Finance:
“Total Revenue” of $1,100,000,000. Because as Sean Parker will tell you, you know what’s really cool? A billion dollars.
“Total Cash” of $363,600,000.
And at least at the moment, zero debt.
So stop right there–what do you think the response would be if you walked into any business school in the world (and not just the good ones) and asked the first MBA you met this question: How would you like a case study of a public company that has a $2.69 billion market cap, and that has government mandated vendors (that’s the artists and songwriters) whose selling price (aka royalties) is set below market by the government, and that has a billion…
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