Please ensure Javascript is enabled for purposes of website accessibility

What's Behind the Management Shake-up at Pandora?

By Motley Fool Staff - Jul 5, 2017 at 4:33PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The streaming-music specialist is making major changes to its senior management team.

Following Sirius XM's new $480 million stake in the company, Pandora Media (P) announced a huge shake-up in its C-suite.

In this clip from Industry Focus: Tech, Motley Fool analyst Dylan Lewis and senior tech specialist Evan Niu explain which members of the management team are leaving, how shareholders are reacting to the news, what this means for Pandora going forward.

A full transcript follows the video.

This video was recorded on June 30, 2017.

Dylan Lewis: We have an update on what's going on with Pandora's management team.

Evan Niu: Yeah. The co-founder and CEO Tim Westergren is stepping down. The former CFO is also leaving, the chief marketing officer is leaving. So, pretty big shake-up there. CFO Naveen Chopra will serve as the interim CEO as they search for a new CEO. And they added a new director, too. So, a lot of changes there at the top.

Lewis: And this isn't all that surprising when you talk about having an outside investor take a major stake in a business and get board seats. They are going to have their influence felt very quickly, because they probably have an idea for how things should be run. So, it's not shocking that there's some management shake-up. There's also, we hinted at this before, a little bit of a refocusing here in where they want to put their capital. They're doubling down on their domestic business now.

Niu: That too. But, as far as Westergren goes, I think it's arguably also overdue. Shares jumped just on the rumors that he was going to be leaving, before it was official. When you think about it, Pandora, in my mind, has really dropped the ball on shifting to on-demand. They created internet radio streaming. They were the first mover, and they've slipped into irrelevance because they didn't really give much attention to on-demand, and they made a lot of strategic missteps. Someone has to be held accountable for these mistakes, and I think shareholders for a while have been frustrated with Westergren. I think that's why shares jumped, and maybe this will help them turn the corner, if they can find someone else who can navigate that transition better.

Dylan Lewis owns shares of Pandora Media. Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Pandora Media. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Pandora Media, Inc. Stock Quote
Pandora Media, Inc.
P

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
403%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.