“Corvex Management LP disclosed on Monday that it owns 9.9 percent of Pandora Media Inc and urged the internet music streaming company to explore a sale instead of pursuing a ‘costly and uncertain business plan,'” Liana B. Baker reports for Reuters.
“Corvex, a hedge fund run by Keith Meister, a protégé of billionaire activist investor Carl Icahn, said it had met with the company’s management and had withdrawn a plan to replace some of its board members,” Baker reports. “However, it now believes Pandora should hire an investment bank to help the company explore its strategic options including a sale.”
“Pandora’s shares are down more than 25 percent in 2016 and more than 45 percent year-over-year. Corvex owns about 22.7 million shares in the company, making the hedge fund Pandora’s largest shareholder,” Baker reports. “Oakland, California-based Pandora has faced tough competition from music-streaming rivals such as Spotify, Apple Inc , Alphabet Inc’s Google and Amazon.com and has failed to turn an annual profit as a public company.”
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MacDailyNews Take: We haven’t listened to Pandora since September 18, 2013, the day Apple launched iTunes Radio.
Corvex sees the writing on the wall.
We haven’t touched Pandora since the day we first launched iTunes Radio. This situation will soon be repeated by millions of iPhone, iPad, iPad mini, iPod touch, Apple TV, Mac, and Windows PC users. The pain looming for Pandora will be intense, especially as it quickly becomes a ghetto for Android settlers who simply do not buy products in the way that Mac and iOS users do. Music labels will take note and act accordingly. — MacDailyNews, September 17, 2013
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