Shares of the Internet pure-play dropped nearly 10% following the CEO announcement so, at least for now, Wall Street is not looking at the change too positively. Westergren taking over follows a swirl of rumors about Pandora possibly being bought.
In mid-February, it was reported that Pandora had hired Morgan Stanley to shop for potential buyers. In Q4 Pandora swung to a loss, despite seeing revenue jump 25%, amid higher expenses that included acquisitions costs. Pandora lost $170 million in 2015 on 250 million registered users. The company added it will likely lose $80 million this year.
The press release announcing Westergren would be back running the company also stated: “Pandora today is in a strong position to maximize our full potential and expand the music marketplace. Tim is the ideal CEO for Pandora as we embark on our next phase of growth.” And the company reaffirmed its previously announced revenue and adjusted EBITDA guidance.
