Royalty Rates May Kill Internet Radio Site

Betting on LinkedIn-esque investor frenzy

(NEWSER) - This is getting to be one pricey box to open: Pandora has jacked the price of its hotly anticipated IPO to $161.5 million, reports the New York Post, up from a slightly more modest $109.5 million last week and $100 million in February. The stock market may be tanking, but the Internet radio company is betting it can still cash in on investor thirst for tech IPOs, a la the frenzy that surrounded LinkedIn last month . Pandora's $161.5 million pricetag would value an offering of 14.7 million shares at $10 to $12 apiece. More»

It hasn't ever turned a profit, but why let the details get you down?

(NEWSER) - Pandora's about to open a new box, reports the LA Times: The Internet radio service filed yesterday for an IPO it hopes will raise $100 million and give it the chance to turn a profit for the first time. Though some 80 million listeners tune in, Pandora is largely free; it lost $16.8 million for the fiscal year ended Jan. 31, 2010, but only $300,000 from that period through Oct. 31, 2010. It coughs up 60% of its revenues to pay performance royalties. More»

(NEWSER) - Record labels and the online radio industry have reached a deal on royalties that insiders think will allow the medium to survive, the New York Times reports. Larger sites like Pandora will pay the labels 25% of revenue or up to 14 cents for every song they stream—whichever is higher—and small sites will pay 12% to 14% of revenue. Prior to the deal, rates were set to hit 19 cents per song, and many so-called webcasters said they couldn't survive. More»

It's the latest in a new wave of Internet coming out parties

(AP) - The shares of popular but unprofitable Internet radio service Pandora soared more than 50% in its market debut. Its shares rose as high as $26 in early trading this morning, up from its offering price of $16 and valuing Pandora Media Inc. at more than $4 billion. That is easily more than the current value of AOL Inc., but a fraction of such Internet behemoths as Google or Yahoo Inc. More»

iPhone, iPad contain identifiers that can't be blocked: suit

(NEWSER) - Apple allows iPhone and iPad apps to send users' personal info to advertising networks without consent, according to a lawsuit filed last week. The suit says the gadgets contain identifying devices that let these networks track users' app downloads and usage, Bloomberg reports. Some apps also sell information like users' "location, age, gender, income, ethnicity, sexual orientation and political views" to advertisers, the suit alleges. More»