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Wednesday, September 14, 2011

Is iHeartRadio a threat to Pandora's value?

Pandora Pandora's value as a company is now being questioned by Forbes, which speculates an answer as to why Pandora's stock has dropped from $13.98 on August 31 to close at $9.87 on September 12, the span of just eight trading days. According to Forbes, "Clear Channel has launched its iHeartRadio app and website in a direct assault on Pandora’s growth. Its new offering will let users create customized stations, a core feature at the center of Pandora’s business model." Forbes concludes that if Clear Channel can successfully market both the new app and the website, "users may opt to go to Clear Channel instead of Pandora especially if its selection of music is indeed much larger than Pandora’s." You can read the complete Forbes article here.

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