Pandora Surges As Facebook's Music Streaming Service Rumors Are Discarded

Shares of Pandora Media Inc P rose more than 3 percent on Thursday, after Facebook Inc FB said it is not building a music streaming service.

On Wednesday, Music Ally posted an article assuring that, on top of working on ad-supported native videos, the social media behemoth is also planning on launching a music streaming service that can compete with Spotify, Apple Inc. AAPL’s Apple Music, and other similar services.

Related Link: Does Apple Music Help Or Hurt Pandora? Morgan Stanley Has An Answer

Sources familiar with Facebook told Music Ally, off the record, that the company’s plans are “bold,” and include monetizing music videos as an important step in the way towards the rumored on-demand audio service.

On Wednesday, however, a Facebook spokesperson told The Verge that the company has no plans to incursion in music streaming at the time.

“A source familiar with the matter said the last thing Facebook wants to do right now is take on Apple in a streaming war,” Wednesday’s note reads.

It is true that Facebook is in talks with major labels. Nonetheless, sources inform that these are still in the early phases and they are not about getting involved in the streaming business.

The Verge adds, “sources reiterated Facebook wants to create something unique and unlike any other service currently on the market.”