Pandora sings happy tune: IPO fetches $16 a share

By the Associated Press | June 14, 2011 | 7:26 PM EDT

SAN FRANCISCO (AP) — Pandora Media sold its initial public offering of stock at $16 per share Tuesday. That's double what the popular but unprofitable Internet radio service expected less than two weeks ago.

The IPO's completion sets the stage for Pandora to make its stock market debut Wednesday morning with a market value of $2.6 billion. That's a lofty appraisal for a company that has lost a total of $92 million during its 11-year history.

The buyers of the 14.7 million shares sold in Pandora's IPO are betting the recent fervor for new stock offerings from rapidly growing Internet services will quickly drive up the company's stock price. That's what happened last month after the IPO of LinkedIn Corp., the company behind the world's largest site for business networking.