(Adds details, share move)
May 8 Pandora Media Inc said on Monday
that KKR & Co LP has agreed to invest $150 million in
the music streaming service, while the company explores
strategic alternatives, including a sale.
The company's shares were up 3.4 percent at $10.75 in
Pandora said Richard Sarnoff, KKR's head of media &
communications private equity investing in the Americas, will
join its board.
"... We have positioned the company to evaluate any
potential strategic alternatives, including a sale, in the 30
days before the financing is set to close," board member James
Feuille said in a statement.
Pandora has been urged to explore a sale by hedge fund
Corvex Management LP, run by activist investor Keith Meister,
after it disclosed a 9.9 percent stake in Pandora in May last
Pandora also said that Feuille and Peter Gotcher will resign
from the board, which is forming an independent committee to
identify and appoint new directors.
KKR will purchase $150 million in a new designated Series A
convertible preferred stock of Pandora. The offering, which is
not expected to close earlier than June 8, may be upsized to a
total of $250 million.
Pandora faces stiff competition from services such as
Sweden's Spotify, Apple Inc's Apple Music, Google's
Play Music and Amazon.com Inc's Amazon Music
Unlimited, which dominate the on-demand music service market.
Centerview Partners LLC and Morgan Stanley will continue to
advise the board regarding its review of strategic alternatives,
(Reporting by Anya George Tharakan in Bengaluru; Editing by
Shounak Dasgupta and Maju Samuel)