Shares of Pandora (P 8.58, +0.30) have jumped 3.6% after Recode reported that Chief Executive Officer Tim Westergren will step down, signaling a potential change in direction.
Mr. Westergren, whose latest stint as CEO lasted just over a year, will end his run with Pandora 17 years after he founded the company. However, he is expected to remain in his role until a new Chief Executive Officer is named. Pandora was among the first companies that popularized streaming music, but competition from Spotify and entrenched technology heavyweights like Apple (AAPL 147.62, +1.34) and Alphabet (GOOGL 985.26, -0.83) has prevented Pandora from realizing strong growth. The disappointment has been reflected in the shares, which trade just above their all-time low of $6.76 that was notched one week ago.
Hoping to rekindle user interest, Pandora launched a premium service in the middle of March for $10 per month, but this launch came long after Pandora's competitors began offering subscription services of their own.
Earlier this month, Pandora reportedly rejected an acquisition offer from SiriusXM (SIRI 5.41, +0.06), which valued Pandora at $8 per share. While the two sides were unable to agree on an acquisition, SiriusXM's Eventbrite agreed to purchase Pandora's Ticketfly business for $200 million and SiriusXM agreed to make a $480-million strategic investment in Pandora. In exchange, SiriusXM will receive a 19.0% stake in Pandora and three board seats.