It was just announced that Pandora founder Tim Westergren has returned as CEO. The markets did not like the news, punishing Pandora’s stock, but Chris Castle asks a fair question: Should we give Westergren a chance to undo past misdeeds that Pandora made under different CEOs?
Tim Westergren has returned to Pandora as the company’s CEO. He’s got a golden opportunity to change how Pandora is viewed–we all want Pandora to succeed, but there’s little support for the path the company has been on for years now. The 42% decline in Pandora’s stock price over the last 12 months hasn’t been helped by the company’s rocky relationship with the vendors of their main product: music.
With some analysts giving Pandora a fair value stock price of $7, here’s a little unsolicited advice.
Overhead: Pandora’s overhead is out of control. They will blame it on royalties, but a closer look shows that the company has a problem with its operating costs that they would like you to ignore (hence the $7 fair value price target).
Integrity: Westergren arrives at Pandora in a much different point in the zeitgeist than when he founded the company in terms…
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