It's Pandora's big day, who uncovers the box and makes her debut on Wall Street. The pioneering internet radio company launched its IPO today. And the share price, already revised upwards last night, rose further: 16 dollars each. Only at the end of last week there was talk of a figure between 10 and 12 dollars. The company will sell 14,7 million shares, for a total of $235 million. The overall value of the company is around 2,5 billion. After Linkedin and Groupon (which filed the documents for listing on the stock market last week), here is a new big name on the web that is trying to monetize American price lists.
Pandora offers a simple and innovative service, even if more than fierce competition is to be expected in the future. That of the Californian company is not just radio on the web: the system suggests users the most clicked songs, selected through constant feedback from Internet users, and allows you to create playlists of songs, artists and musical genres. All of which can also be played on smartphones. In the United States alone, 90 million people are already registered on the site. Advertisements are the major source of revenue for the company, which however is forced to spend much more on royalties for music tracks. Bottom line: In the first quarter of this year, Pandora's revenues were $51 million, with a net loss of $6,8 million.
