(OAKLAND) -- Online music provider Pandora Media on Friday announced that it plans to go public and will attempt to raise up to $100 million through sales of stock.
The company has filed the necessary paperwork with the Securities and Exchange Commission in the proposed initial public offering, with the aim of generating funds to help expand its operations. For the fiscal year ending Jan. 31, 2010, Pandora raked in $55.1 million in revenue, and reported a loss of $16.8 million. For the period of Feb. 1, 2010, through Oct. 31, 2010, the company’s reported loss wasn’t as severe, dipping to $300,000, while its revenue shot up significantly to $90.1 million.
According to reports, Pandora, which generates most of its revenue from advertising and subscription fees, spends a hefty amount on licensing fees. The company says it currently has some 800,000 songs in its database and over 80 million users, but since most of the listeners choose not to opt for the paid subscription, consumers aren't a major source of revenue. Pandora’s attempt to go public could possibly lead to it posting its first profit.
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