Pandora Media's founder returns as CEO; shares fall

Mon Mar 28, 2016 1:44pm EDT
 
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By Kshitiz Goliya

(Reuters) - Online music streaming service Pandora Media Inc (P.N: Quote) appointed founder Tim Westergren as its chief executive to replace Brian McAndrews, who left the company on Monday, sending its shares down 10 percent.

The company also appointed independent board member Jim Feuille as chairman and promoted chief strategy officer Sara Clemens to chief operating officer.

Westergren, who co-founded the service in 2000, earlier served as the company's CEO from May 2002 to July 2004.

McAndrews, who took over as CEO in September 2013, also serves on the board of New York Times Co (NYT.N: Quote) and GrubHub Inc (GRUB.N: Quote).

McAndrews is known for his leadership of online display advertising company aQuantive Inc, which Microsoft Corp (MSFT.O: Quote) bought in 2007 for $6 billion after paying an 85 percent premium.

Pandora, whose shares had fallen 32.5 percent in the last 12 months, faces stiff competition from Spotify, Apple Inc's (AAPL.O: Quote) Apple Music and Amazon.com Inc (AMZN.O: Quote).

"I'm sure the stock performance was a factor in McAndrews' departure," Wedbush Securities analyst Michael Pachter told Reuters.

Pandora last month reported disappointing fourth-quarter results with active listeners of 81.1 million at the end of December, a slight fall from a year earlier.   Continued...

 
Tim Westergren (bottom center-left) on the floor of the New York Stock Exchange June 15, 2011.  REUTERS/Ben Hider-NYSE Euronext