Pandora Exits Australia, As Stock Market Reacts To CEO Tim Westergren’s Departure [UPDATED]
[UPDATED] The results of Sirius XM’s $450 million investment rocked the music streamer early this week as it became official that co-founder and CEO Tim Westergren is out at Pandora. New reports have that the company exiting its only non-U.S. markets.
Pandora is shutting down service in Australia and New Zealand, local media is reporting. Employing 60 staffers, it is the U.S. based music streamer’s only overseas operation. Local streamer Guvera closed there in 2016, and Deezer exited Australia in 2017; after each had failed to attract enough listeners and advertisers.
The news came at the same time that the exit of CEO and founder Tim Westergren became official.
Wall Street Reacts
Overall, Wall Street approved of the moves. On a flat day in the markets, the previously battered Pandora [P] stock rose through most of Monday, closing up 2.27% yesterday at $8.46. Just a week ago, Pandora stock hit a one year low of $6.91.
UPDATE: After Westergren’s exit became official Tuesday morning, the stock lost half its gain and was trading at $8.36 mid-morning ET.
We’ll be watching to see what cuts come next at Pandora, including within its artist friendly Pandor AMP and Next Big Sound divisions, both of which get high marks from both artists and the music industry.