Pandora Inc., the biggest online radio provider, fell the most in six months after CNET and the New York Times reported Apple Inc. aims to unveil a competing service as early as next week.
Pandora fell 10 percent to $15.25 at 2:11 p.m. in New York after dropping as much as 14 percent, the biggest intraday decline since Dec. 5, 2012. The Oakland, California-based company’s stock had almost doubled this year through May 31.
Just last week, Apple CEO Tim Cook promised more “game changer” products.
Apple is pressing to sign music licensing deals in time to announce the service at its annual developer conference starting June 10 in San Francisco, The New York Times reported, citing people briefed on the matter. CNET reported Apple had reached agreements with Warner Music and its publishing arm.
The service, called iRadio, has clinched deals with Universal Music Group’s record labels, though not for its music- publishing rights, the newspaper reported. The Times also reported Cupertino, California-based Apple’s pact with Warner Music, citing people who spoke anonymously.
Record labels and music publishers have been seeking higher royalty rates and guaranteed minimum payments, the Times said.