Arab Today, arab today major investor urges sale of online radio firm pandora
Last Updated : GMT 06:58:42
Arab Today, arab today
Arab Today, arab today

Major investor urges sale of online radio firm Pandora

Arab Today, arab today

Arab Today, arab today Major investor urges sale of online radio firm Pandora

Pandora Media Inc., the online-radio company
San Francisco - AFP

An activist hedge fund revealed it owns nearly 10 percent of Pandora and called for the sale of the Internet radio service.

Corvex Management managing partner Keith Meister said in a letter to the Pandora board that his fund holds about 22.7 million shares, making it the Oakland-based company's largest shareholder with a stake of 9.9 percent.

"We have become increasingly concerned that the company may be pursuing a costly and uncertain business plan," Meister said in the letter, a copy of which was filed with the Securities and Exchange Commission and available online.

"Let us be clear -- It remains our firm belief that the company should immediately explore the potential value to shareholders that could be realized in a sale transaction."

Meister, who once worked closely with activist investor Carl Icahn, expressed "frustration" with Pandora's stock performance and argued that the company has been unable "to translate a great product into a great business."

He argued that Pandora would have strong value as part of a larger operation, instead of as a stand-alone service.

Pandora shares were up 3.51 percent to $10.33 in after market trades on the New York Stock Exchange. Pandora had explored sale of the company earlier this year, according to US media reports.

- Founder as front man -

Co-founder Tim Westergren returned in March as chief executive failed to ignite confidence in Pandora's long-term prospects. 

Westergren helped found the Internet radio service in the early 2000s and served as chief executive from 2002 to 2004.

"Tim carries the vision for how Pandora can transform the music industry and he is uniquely able to connect with listeners, music makers and employees," Pandora chairman Jim Feuille said at the time.

Pandora shares have come under pressure as rivals such as Apple and Spotify have built up significant Internet music businesses. In 2015, Pandora reported a loss of $169.7 million.

Westergren, a musician and composer who worked in the music industry for more than 20 years, helped launch Pandora's Music Genome Project, which suggests new music selections to consumers based on their taste.

The service caught on, enabling Pandora to go public in 2011 with more than 80 million registered users. Pandora has not reported a profit since going public.

Shares fell steeply over the last two years as competition intensified. 

Faced with slowing growth, the company unveiled a plan of heavy investment to ramp up its on-demand service, expand its event ticketing operations and build a bigger international presence.

The company in February said these initiatives would allow it to notch $4 billion in annual revenues within five years, compared with $1.2 billion in 2015.

"We find it difficult to reconcile Mr. Westergren’s idealism and music industry evangelism with the goal of maximizing risk-adjusted shareholder value and your responsibilities to investors," Meister said in the letter, which was addressed to Feuille.

"Simply put, we believe Pandora can become an even more differentiated product and a more valuable business as a part of a larger enterprise."

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today major investor urges sale of online radio firm pandora Arab Today, arab today major investor urges sale of online radio firm pandora

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues
View News in Arabic - Media: راديو
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday