“Pandora is the new Internet.”
“Pandoras ads have been the hottest revenue generator in the Internet business.”
“It’s going to be a $10-billion company,” said David C. Karp, chairman of Karp & Schmitz and co-founder of Internet research firm Strategy Analytics.
“I don’t think the Internet is the Internet anymore.”
Pandora, which started in 2004, has since generated $25 billion in annual revenue, according to its founders, former Google CEO Eric Schmidt and longtime chairman Larry Page.
That’s more than twice what Google Inc. makes in a year.
Google, the world’s largest search engine, has invested billions in its own advertising businesses to reach its customers and is expanding its advertising reach to include more mobile devices.
The company is building a new $50 billion advertising business, which is expected to be completed by the end of 2020, and is set to launch a new social network, according forgoes the traditional ads that have dominated the Internet for more than a decade.
Pandora’s ads are not paid for with traditional ads, but instead with data from social media and other platforms, which can be used to target advertising at users.
“I think it’s a great business model and I think it will be a great company,” Schmidt told a conference call on Wednesday.
“And I think you’ll see that the way it’s going, it will take us off the Internet.
It will take the Internet off the charts,” he said.
“And I’m optimistic about that.”
The Internet has been a dominant force in business since its inception.
The Internet is now a $1 trillion business, with $3.6 trillion in revenue and more than 200 million users.
But Google, the Internet’s biggest user, has faced significant challenges in the past year.
Its revenue from search and other Internet products dipped more than 10% in the first quarter, as Google struggled to maintain a high level of quality and monetize its service.
In May, Google announced a deal to buy video-streaming service Twitch, but the deal was criticized by antitrust regulators for allowing the company to take advantage of video-sharing platforms such as YouTube.
Last year, Google also spent $4 billion on an advertising deal with Microsoft Corp. in an attempt to gain a foothold in the mobile industry.
The deal was canceled in August, and the company has been working to diversify its revenue.
The search giant said last month that it had spent $2.6 billion to acquire a number of video game companies.
“There are a lot of things in this market that are more important than Google and we’re trying to figure out how to do those things better,” said Brian Johnson, chief executive officer of digital advertising firm Avis Budgeting.
“The Internet, for the first time in history, is the dominant business in this space.”
In the last quarter, Google had $3 billion in revenue, down $900 million from the previous quarter.
Revenue from mobile devices was down $2 billion, but mobile devices are expected to grow for the second consecutive year, according Google.
Google is expected spend $1 billion to expand its online advertising services, including an expansion of its YouTube network, and it is working on partnerships with more than 20 companies.
In a recent report, the consulting firm Deloitte said Google was the best-performing U.S. tech company last year.
But analysts at Deloitterese estimated that the Internet ad business will still generate more than $10 trillion in annual revenues in 2020.