Pandora CFO downplays Apple ‘iRadio’ rumblings
Pandora’s stock sunk further Tuesday after anticipation grew that Apple Inc. is getting closer to launching a rival music streaming service and has deals with two major labels in place.
But Chief Financial Officer Mike Herring says he isn’t worried about Apple’s long-rumored Pandora rival, dubbed iRadio.
On Tuesday, Herring played down the speculation, noting no announcements have been made and nothing has been officially launched.
“We’re waiting, like the rest of you, to find out what they’re going to do,” he said in remarks at the Bank of America Merrill Lynch Global Technology Conference in San Francisco. “We’ll compete against any real or imaginary competitor just the way we always have.”
Shares of Pandora fell 5.5% on Tuesday. The Oakland company’s stock has fallen more than 15% since Friday to $14.38.
Herring noted that rumors earlier this year that Google would launch a music streaming service had a similar effect on the stock.
However, he said, fears subsided when Google actually launched the service and it was easier to point out the differences between Google Play Music All Access and Pandora.
“It hasn’t dented the perception of where our business can go,” he said.
The Los Angeles Times, among other media outlets, have reported that Apple has reached accords with Warner Music Group and Universal Music Group. The main holdout is Sony/ATV.
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