(Hypebot) – Shares of Pandora [P] fell as much as 7% yesterday on news that the music streamer had acquired indie ticketer Ticketfly for $450 million. While the deal could lead to new opportunities for artists, Wall Street was skeptical.
At $450 million, Pandora paid 8 times annual revenue for $55 million, according to reports. That's a hefty price to pay for a company that's portfolio of tickets is dwarfed by rival Ticketmaster.
But for Pandora the deal means diversification, a new revenue stream and a chance to use the deep data the companies have gathered to both fuel their own revenue and to add opportunities for artists.
Over all, NASDAQ was up 100 points yesterday and Pandora's tock recovered slightly closing down 4.6% at the end of trading Wednesday.