Pandora Media Inc., the Internet radio service, rose as much as 4.2 percent after Apple Inc. delayed plans to start a competing music service.
Pandora gained 1.5 percent to $11.85 at 2:11 p.m. in New York trading after reaching as high as $12.16. The stock had climbed 27 percent this year as of yesterday. Pandora plans to report fiscal fourth-quarter results today after markets close.
Talks between Apple and record companies have stalled, pushing back the Cupertino, California-based company’s plans to start an advertising supported radio service until later this year, people with knowledge of the situation said.
Apple had sought to start the service by April. Unlike Apple, Oakland, California-based Pandora doesn’t seek agreements with record companies, relying instead on a compulsory royalty system run through the Library of Congress.
Apple is asking music labels for rates that are half what Pandora pays, the New York Post reported earlier today. Apple has offered to pay 6 cents per 100 songs, compared with 12 cents for Pandora, the newspaper wrote.