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Pandora shares rise as activist pushes for assets sale

Pandora Radio
Andrew Harrer | Bloomberg | Getty Images

Pandora's stock rose more than 6 percent Tuesday as the music streaming company faces pressure from an activist investor to sell some of its assets.

"We have become increasingly concerned that the company may be pursuing a costly and uncertain business plan, without a thorough evaluation of all shareholder value-maximizing alternatives," Corvex Management, a hedge fund run by Keith Meister, said in a Monday letter to Pandora shareholders. "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."

Corvex disclosed a 9.9 percent stake in Pandora on Monday, making it the largest single shareholder in the company.

Tim Westergren, co-founder of Pandora Media
Pandora founder Westergren takes helm as CEO, shares fall

Shares of Pandora are up 20 percent in the past three months, but have fallen more than 20 percent in 2016.

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Source: FactSet