Broadcasting company, Sling TV, is undergoing a serious management rejig with the recent news of their CEO Robert Lynch leaving the company to join music streaming company Pandora as their new chief executive. Lynch will replace interim CEO Naveen Chopra who will resume his earlier role as a Chief Financial Officer.
As an outcome of this development, the shares of Pandora increased by 4.5% at a price of $8.45. Pandora used to be a one of the leading music streaming companies in the world, but with customers shifting their preference to Apple Music and Spotify, their customer base stopped growing. Moreover, Pandora itself faced a major management shuffle earlier in June when Sirium XM, an American radio and broadcasting company owned by Liberty Media Corp, decided to invest $480 million with the condition that it gets three seats on the board and also the right to pick the chairman. This compelled the co-founder of Pandora, Tim Westergren, to step down. President Mike Herring and Chief Marketing Officer Nick Bartle also left the company.
On Monday, Pandora reported a surge in its revenue to the tune of 10% even though the company had registered a net loss of $275 million. Pandora also appointed Chairman of Snap, Inc., Michael Lynton, as one of its board members.
Speaking on the appointment of Lynch as the new CEO, analyst Barton Crockett of FBR Capital Markets and Co., said that Lynch has proven his mettle when he led Sling to be the leader in skinny video bundles. Sources have indicated that Pandora has offered him a package of $13 million. The compensation comprises of $650,000 in salary and a similar valued annual target bonus. He also gets a $250,000 one-time payment within the first month of him joining in the new role. He also receives $6.5 million in shares that will be vested over a period of time and another $5.25 million in stock options. Lynch will formally take office on September 18.