Activist Investor Says Pandora Is 'Pursuing A Costly And Uncertain Business Plan'

Corvex Management is an activist investment firm and also Pandora Media Inc (NYSE: P)'s largest shareholder with a 9.9 percent stake.On Monday, Corvex's Managing Partner Keith Meister delivered a letter to Pandora's Chairman of The Board Jim Feuille. The investment manager stated that while he is "optimistic" that the Board of Directors and management shares a similar positive view of the company, he has also become "increasingly concerned that the company may be pursuing a costly and uncertain business plan."According to Meister, Pandora should "immediately engage an independent investment bank with a fresh perspective" and explore all strategic options available, including the execution of a sales process."Despite its many strengths, the company has been unable to date to translate its great product into a great business with an attractive public market valuation," Meister wrote. "In our discussions we have tried to thoughtfully express our concerns regarding Pandora's share price underperformance and poor equity currency; questionable capital allocation decisions; poor investor communications; lack of senior management equity ownership; and substantial stock-based compensation."Meister concluded by stating that Pandora could become "an even more differentiated product and a more valuable business" if it is part of a larger enterprise."We urge the company to immediately engage an independent investment bank with a fresh perspective and no prior relationship with the company to advise on a value maximization process including a thorough sales process," the letter concluded.