If Music Streaming is Doing so Well, Why the plunge, Pandora?

Pandora Media Inc. P, -1.45% on Monday said its founder and 20-year music industry veteran Tim Westergren would succeed Chief Executive Brian McAndrews, who is leaving the company. Shares, which have erased a third of their value over the past 12 months, tumbled about 12% Monday to $9.60.

 The streaming radio company didn’t give a reason for McAndrews’s departure. Pandora also said Finance Chief Mike Herring would take the president title, among other executive changes. Sara Clemens will switch to operating chief from chief strategy officer, focusing on growing and scaling the business and “operating new ventures.”

 McAndrews, who took the helm 2 1/2 years ago, said in a statement that he was proud of putting in place a robust strategy and “with the team and strategy in place and execution under way, I am passing the baton on to Tim.”

 Pandora is facing an increasingly competitive music streaming landscape. The June 30 launch of Apple Music and its accompanying three-month-free trial caused other competitors such as Spotify to ramp up their spending on marketing, leading to what Pandora called a “short-term impact” on its audience growth. In its fourth quarter ended December, Pandora swung to a loss, despite seeing revenue jump 25%, amid higher expenses that included acquisitions costs.

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