It is reported that the biggest Web radio service Pandora Media Inc (NYSE:P) fell 10 percent when Apple Inc. (NASDAQ:AAPL) reported that they had attracted more than 11 million unique listeners to its new iTunes Radio service. Pandora, with 72 million active listeners, slid to $24.26 at time of closing in New York. Shares of the Oakland, California-based company were doubled this year.
According to reports that the Apple Inc. (NASDAQ:AAPL) is going to challenge Pandora and Clear Channel Communications Inc. (CCMO)’s iHeartRadio for listeners and advertisers after adding the new radio feature in its updated iOS for iPhones and iPads. Apple reported that customers downloaded the iOS 7 software on more than 200 million devices since its Sept. 18 release and snapped up a record 9 million new iPhone models over the weekend.
Paul Sweeney, an analyst with Bloomberg Industries reported that each time when the Apple decides to get into a business, it has proven to be a huge disruptor.
Pandora Media Inc (NYSE:P) is going to compete with radio stations for a larger share of $15 billion in local advertising and the company also has opened a sales offices in 29 U.S. cities. Previously in this month, it named digital advertising veteran Brian McAndrews as chairman and chief executive officer. In the previous week it priced an expanded stock offering and company has raised an estimated $378.8 million to finance growth.
It is reported by the Pandora that their company had sold 15.7 million shares at $25 each in the offering led by JPMorgan Chase & Co. and Morgan Stanley. Cross link Capital Inc. the largest shareholder, sold 5.2 million. The sale is expected to be completed on Sept. 24, where as the Apple based California, rose 5 percent to $490.64.