Hedge fund Corvex Management wants Pandora to explore a sale.
The fund recently revealed it has a 9.9% ownership stake in the Internet audio provider.
Fund manager Keith Meister said in a filing both companies have been discussing options for Pandora, including a possible sale, for months to bring greater value to shareholders, reported Bloomberg.
“While we are not pre-judging the outcome, we believe there is likely to be significant strategic interest in the company at a substantial premium to the company’s recent stock price,” wrote Meister.
Tim Westergren took the CEO role again in March, replacing Brian McAndrews, a move that “surprised” Corvex, Meister wrote.
We reported last week Pandora executives told attendees at two investor conferences that Westergren has always had an executive role at the company which has a strong core business. Executives say the on-demand offering will be a chance to upsell current listeners and keep them listening longer.