Corvexreveals 9.9 percent of Pandora Media
Corvex Management LP, which is led by Keith Meister, has announced that it holds a 9.9 percent of Pandora Media Inc.
The hedge fund has asked the internet music streaming company to work towards selling the company and not follow and expensive and uncertain business plan. The company said that it had met with Pandora's management and had also withdrawn a plan to replace some of its board members. It urged the management of Pandora to hire an investment banker and expose strategic options including the sale of business.
Corvex said, "We believe there is likely to be significant strategic interest in the company at a substantial premium to the company's recent stock price." The company also said that large internet companies, handset makers and media companies might be interested in acquiring the popular internet music streaming service.Corvex owns around 22.7 million shares in the company, which makes it the largest shareholder in the company.
Pandora has responded by saying that it holding discussions with shareholders and is committed to achieving long-term value for them. The shares of Pandora have fallen more than 25 percent in 2016 and are trading more than 45 percent down compared to the previous year.
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