Apple is an intimidating competitor as the world’s leading music seller via its iTunes music store. And, the iPhone, iPad, iPod maker has grown further menacing. While its planned music streaming service, dubbed iRadio, has been delayed, Apple is a formidable foe Pandora Media Inc (NYSE:P) cannot ignore.
Apple’s radio-like service is set to be a free app that comes with all iPhones and its other mobile devices. It learns what you like and plays a free stream of songs. Apple Inc. (NASDAQ:AAPL) sneaks in iAds (commercials) in order to cash in from the service.
But Apple Inc. (NASDAQ:AAPL), who has antagonized musical artists and record labels in the past, faces licensing negotiations, which have delayed the launch.
As Pandora launches a search for a new chief, Kennedy leaves big shoes to fill. Named CEO in 2004, Kennedy was instrumental in transforming Pandora from a music technology company into a consumer based radio product that launched on the web in 2005. He was a smart, effective and well-liked leader. No chatter yet as who might replace Kennedy.
Which begs the question, “Could Pandora be in play?”
Rumors have swirled that social media giant Facebook Inc (NASDAQ:FB) and internet search behemoth Google Inc (NASDAQ:GOOG) would like to purchase Pandora.
As Facebook morphs into a true mobile company, the addition of Pandora would be music to investors’ ears. Pandora’s growing mobile user base and mobile revenue, up 111% year-over-year, growing faster than the 70% increase in mobile listening hours, would contribute nicely to Facebook’s bottom-line and expanding portfolio. It would also appease shareholders, especially those who have stuck around since Facebook’ s fabled IPO which turned into a fiasco. Facebook Inc (NASDAQ:FB) went public last May at $38 a share, a level not since a few days following the offering.
Facebook Inc (NASDAQ:FB) bought mobile photo sharing app Instagram for a lofty $1 billion in April 2012, increasing its mobile presence and member count. The social networking leader has also expanded its reach with a new search tool, news feed, gift offering and pay-for-post feature. It continues to try to find ways to keep users engaged and online longer. A tailored radio station would do just that.
Meanwhile Google, is always on the prowl and constantly looking to one-up rivals Apple and Facebook Inc (NASDAQ:FB). The search giant could tune into Pandora first for no other reason than to keep it from Apple Inc. (NASDAQ:AAPL) and Facebook.
With deep pockets, clout and muscle, Google could force Pandora Media Inc (NYSE:P) to face the music with an offer too good to down. That could leave investors singing a happy tune.
The article CEO Resignation Opens Up Pandora’s Box originally appeared on Fool.com and is written by Diane Alter.
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