Web radio service Pandora Media is to raise $231m (£145m) by selling about 10 million in shares, according to a regulatory filing with the US Securities and Exchange Commission (SEC).
The proceeds are expected to be used to boost competition with radio stations for advertisers, working capital and expenditures.
In its filings, Pandora said: "We may use a portion of the net proceeds for potential acquisitions of businesses, products or technologies, although we have no current agreements or understandings with respect to any such transactions."
Pandora’s biggest stockholder Crosslink Capital will sell an additional 4 million shares, while it will hold 25 million shares or about 13% of the outstanding stock even after the transaction.
The Web radio service recently appointed digital ad veteran Brian McAndrews as its new chairman and CEO.
In June 2013, Pandora Media was sued by Broadcast Music (BMI) in a US federal court over license fees, claiming Pandora rejected its planned license fee for playing songs on several devices.
