Sept. 23 (Bloomberg) -- Pandora Media Inc., the biggest Web radio service, fell 10 percent after Apple Inc. said it attracted more than 11 million unique listeners to its new iTunes Radio service.
Pandora, with 72 million active listeners, slid to $24.26 at the close in New York. Shares of the Oakland, California-based company have more than doubled this year.
Apple is seeking to challenge Pandora and Clear Channel Communications Inc.’s iHeartRadio for listeners and advertisers after adding the radio feature in updated iOS operating software for its iPhones and iPads. 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, Apple said today in a statement.
“Whenever Apple decides to get into a business, it has proven to be a huge disrupter,” Paul Sweeney, an analyst with Bloomberg Industries, said in an interview.
Pandora is looking to vie with radio stations for a larger slice of $15 billion in local advertising and has opened sales offices in 29 U.S. cities. Earlier this month, it named digital advertising veteran Brian McAndrews as chairman and chief executive officer. Last week it priced an expanded stock offering and has raised an estimated $378.8 million to finance growth.
The company sold 15.7 million shares at $25 each in the offering led by JPMorgan Chase & Co. and Morgan Stanley. Crosslink Capital Inc., the largest shareholder, sold 5.2 million. The sale is expected to be completed on Sept. 24, Pandora said last week.
Apple, based in Cupertino, California, rose 5 percent to $490.64.
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