Pandora Media is an internet radio service provider that was founded in 2000 in Oakland, California. Their mission is to play only music you love. Pandora differentiates themselves from their competitors by creating dynamic personalized radio stations powered by their Music Genome Project–an ambitious taxonomy of musical data compiled by professional music analysts. Until recently, they were the biggest music streaming service in the United States with more than 80 million monthly active listeners. The service is available on the web and on a variety of mobile and automobile devices in the US, Australia, and New Zealand. Pandora has been making headlines with a recent series of strategic acquisitions, followed by a $300 million convertible debt offering. In May they acquired a social analytics company that focuses on the music industry called Next Big Sound, in October they acquired the online event ticket seller TicketFly, and in November they acquired Rdio, a streaming music service known as the “hipster” version of Spotify. This has caused much speculation on whether or not these moves will be enough to make Pandora successful as the music streaming industry only becomes more and more competitive. In this presentation, I will analyze their financial statements in order to contextualize Pandora’s recent financial activity. I will use their Income Statement to analyze the structure of their business model and evaluate their performance over the past 3 years. Next I will look at their Balance Sheet to assess the overall health of the company. Then I will review their Cash Flow Statement to determine how long they can continue to operate with the amount of cash they have, in other words I will calculate their burn rate. Lastly I will identify what I believe to be are their two biggest risk factors, and offer my opinion on whether or not I believe their recent acquisitions will be enough to propel them ahead of the competition and perhaps become the first profitable music technology company.