Pandora Media Inc (P) Shares Fall on Investment News

Pandora Media Inc (NYSE:P) stock was down on Tuesday following news of an investment from private equity firm KKR.

Pandora Media Inc (P) Shares Fall on Investment NewsThe investment into Pandora Media Inc from KKR will be for $150 million. As a result of this investment, Richard Sarnoff, KKR’s Head of Media & Communications Private Equity investing in the Americas, is joining P’s Board of Directors.

The investment has KKR buying $150 million worth of new designated Series A convertible preferred shares from Pandora Media Inc. It includes a dividend of 7.5%  in cash or 8% if paid in kind, with P getting to chose which way to pay.

As part of a separate announcement, Pandora Media Inc says that it will be dropping two members from its Board of Directors. This will have James M. P. Feuille and Peter Gotcher resigning from the Board. A special committee will be formed by Timothy Leiweke, an independent director, to chose new members of the Board.

Pandora Media Inc will also be holding a vote for shareholders at its 2017 annual meeting. It is seeking to have shareholders “approve a resolution to declassify the Board and provide for the annual election of directors in the future”.

Pandora Media Inc also says that it will still be looking at strategic alternatives in the future. Centerview Partners LLC and Morgan Stanley will continue to act as advisors to the Board of Directors while this is taking place.

Topping off Pandora Media Inc news is its earnings report for the first quarter of 2017. The company reported losses per share of 24 cents on revenue of $316 million. Wall Street was expecting the music streaming company to report losses per share of 34 cents on revenue of $318 million.

P stock was down 5% as of Tuesday morning and is down 25% year-to-date.

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