Pandora advances after Sirius XM CEO says has best business model

Shares of music streaming giant Pandora (P) are advancing after Sirius XM (SIRI) CEO Jim Meyer commented on Pandora's business model on his company's earnings conference call. WHAT'S NEW: Earlier today, Sirius XM CEO Jim Meyer said on his company's earnings conference call that "of all the streaming models out there and companies out there, it's our guess that Pandora probably has the best chance of becoming profitable and probably has the most reasonable business model in that class." WHAT'S NOTABLE: According to a Bloomberg report from July 25, Pandora retained Centerview Partners to help advise on strategic options as it responds to pressure from activist investor Corvex. According to the report, Centerview is assisting Pandora discuss its future plans with Corvex and at some point, Centerview may be asked to run a sale of the company. No transaction is imminent and sale discussions are preliminary, the sources told Bloomberg. Also notable, The Wall Street Journal reported on July 21 that Liberty Media (LMCA), the controlling shareholder of Sirius XM, floated a $15 per share offer for Pandora. ANALYST VIEW: After The Wall Street Journal reported that Sirius XM's controlling shareholder, Liberty Media, previously was rejected after making a takeover overture to Pandora, Piper Jaffray analyst Stan Meyers laid out a "number of hidden synergies" Pandora could bring to SiriusXM, such as consumer data, an advertising sales force and the potential to combine their services into a bundle that would be "more valuable/stickier with subscribers." The analyst, who kept an Overweight rating on Pandora on July 21, says he has "increased optimism" on the shares given the potential takeout and a number of other positives he sees. PRICE ACTION: Pandora is adding to yesterday's gains and is currently up 1.6% to $13.20 in late morning trading.