Pandora Media’s CEO Tim Westergren
Later Sirius XM agreed to invest in the audio streaming 31, the co-founder Tim Westergren of Pandora Media Inc resigned as board member and chief executive, less than a month.
Served as president and CEO for around two years before returning to direct the business in March.
Since his return, the stock has soared 22 percent. Pandora’s shares were down 0.6 percent at $8.41 on Tuesday.
Sirius XM Holdings Inc had said it would invest $480-million in the business, get the right and three board seats to select the chairman.
“We anticipate the new CEO of (Pandora) to come from (Sirius) directly, or from John Malone’s extensive rolodex,” Needham amp; Co analyst Laura Martin wrote in a note.
The departure of Westergren implies Sirius XM is getting its own people in place at Pandora’s top, she said.
Reuters had mentioned that conversations about Sirius XM buying the company ended over cost disagreements.
Pandora said that Chief Marketing Officer Nick Bartle and President Mike Herring left the business.
“It is not clear whether there are experienced people actually running the business,” Wedbush Securities analyst Michael Pachter said.
Naveen Chopra, who had been hired as chief financial officer in February was named by Pandora.
The business, which has never turned a profit on an yearly basis, faces competition from providers like the Apple Music of Apple Inc Sweden’s Spotify and the Google Play Music of Alphabet.
In May, Pandora reported its slowest ever sales increase and its loss and cut its revenue forecast.