Before you start having a heart attack over your favorite internet music source being crushed by the enemy by the name of the US judicial system, note that Pandora was actually served in early 2011, not just yesterday. Today Pandora announced the situation in a report submitted an amend their S-1 filing with the Securities and Exchange Commission (SEC) to inform potential investors as to what’s happened with a subpoena served to them earlier this year. This amendment was made so that these investors can feel secure in joining in on Pandora’s first public offering – buy up!
What Pandora submitted was a report that included the following, sent so that their potential new owners might know the truth: “… In early 2011, we were served with a subpoena to produce documents in connection with a federal grand jury, which we believe was convened to investigate the information sharing processes of certain popular applications that run on the Apple and Android mobile platforms. While we were informed that we are not a specific target of the investigation, and we believe that similar subpoenas were issued on an industry-wide basis to the publishers of numerous other smartphone applications, we will likely incur legal costs related to compliance with the subpoena, management’s attention could be diverted and there is no guarantee that we will avoid costly litigation.”
Does that sound like something that’d make you want to invest in Pandora stock? I’ve gotta say that it seems like, considering the situation, Pandora might be better to reconsider their bid to go public until all this is sorted out. Then again, they have assured everyone that the music will definitely go on, no matter what:
“Restrictions on our ability to collect, access and harness listener data, or to use or disclose listener data or any profiles that we develop using such data, would in turn limit our ability to stream personalized music content to our listeners and offer targeted advertising opportunities to our advertising customers, each of which are critical to the success of our business.”[via mocoNews]