Pandora stock sinks on sign Apple is nearing launch of ‘iRadio’
Shares of Pandora Media Inc. tumbled Monday after reports surfaced that Apple Inc. had taken a key step toward launching its own music streaming service.
Warner Music Group has signed a publishing and recorded music licensing deal with Apple for its long-rumored Pandora rival, widely referred to as iRadio, according to multiple reports.
About halfway through Monday’s stock-market session, Pandora shares were trading at $15.06, down $1.96, or 12%, from Friday’s closing price.
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According to Billboard, Apple is still hashing out a deal for the rights to Universal Music Group’s publishing licenses and is pursuing deals with Sony Music Entertainment and Sony/ATV. It is unlikely Apple would launch an Internet radio service without those deals in place.
With the Warner deal, Apple will reportedly pay the company more per stream than what is currently paid by most streaming services, including Pandora.
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Twitter: @rfaughnder
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