Pandora CEO Tim Westergren departs

Asa Mathat for Vox Media

Asa Mathat for Vox Media

Pandora announced June 9 that it had agreed to sell a 19 per cent stake to Sirius, the satellite-radio provider.

CFO Naveen Chopra will serve as interim CEO, Pandora said in a news release.

Pandora's Tim Westergren is set to step down as the company's CEO.

Pandora welcomed to the board Jason Hirschhorn, CEO of ReDEG Group and former executive of Myspace, Inc., Sling Media, Inc., MTV Networks and Metro-Goldwyn-Mayer Studios, Inc.

The addition of Hirschhorn and Faxon to the board gives Pandora leaders who understand the music industry, but the company might need "hardcore strategists who can deal with the challenges of the market", according to Crupnick.

Even with those actions, the bad news may not be over for Pandora.

Meanwhile, music listeners have begun gravitating to the on-demand subscription services of Spotify, Apple and others, which offer ad-free access.

"We expect the new CEO of (Pandora) to come from (Sirius) directly, or from John Malone's extensive rolodex", Needham & Co analyst Laura Martin wrote in a note.

Following rumblings of a shakeup over the weekend, Pandora confirmed today that co-founder Tim Westergren is stepping down from his role as CEO.

Pandora has struggled to contend with the fast growth of Spotify and Apple Music, along with the billions of dollars Inc and Google are investing in music.

Pandora posted a net loss of $US343m in 2016, on annual revenues of $US1.39bn. Due to deflating stock that dropped over 40 percent weeks after the deal was announced, Ticketfly's final price tag was closer to $335 million. The company, which went public in 2011, amassed almost 80 million listeners each month, and built a substantial online advertising business, topping $1 billion past year. But in the last five years, it ceded momentum to faster-growing rivals like Spotify and Apple Music, which stuck more modern deals with labels that let listeners hear almost any song they want, as often as they want. Its shares were down 1.5 per cent to US$8.33 at 10am NY time.

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