Keith Meister's Bullish Stance On Pandora 2.0
Activist investor Corvex Management has been heavily involved in Pandora Media Inc (NYSE:P) stock since last year and was likely disappointing with the stock’s performance and the company’s direction — until Friday.
Pandora’s stock hit a new multi-year low of $8.14 on Wednesday but the company’s announcement on Friday of a strategic investment from Sirius XM Holdings Inc. (NASDAQ:SIRI) and an asset sale prompted the activist investor to declare a new era has begun at Pandora.
The most notable highlight of Friday’s announcement is the fact that Pandora’s strategic investment was made by two of the media sector’s most successful investors of all time — John Malone and Greg Maffei, Keith Meister explained to CNBC during Friday’s “Halftime Report” segment.
“These guys have a great nose for making money,” Meister emphasized.
Meanwhile, Malone and Maffei are both “prudent operators” with an impressive execution history, Meister added.
Pandora’s balance sheet now contains around $700 million in incremental cash, which creates a “new opportunity for the new Pandora 2.0.” Although the company does have a poor track record of execution, Malone and Maffei will be keeping a closer eye on their investment as Sirius has been granted three of Pandora’s nine board seats, including the chairman’s title.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.