The head of the activist hedge fund that's pushed for a Pandora sale said its deal with SiriusXM sets the music platform up for a turnaround.
"I think there's a huge new opportunity for a new Pandora 2.0," Keith Meister, CEO of Corvex Management, said Friday on CNBC's "Halftime Report."
Pandora shares are down more than 30 percent year to date. Shares rose 2 percent Friday after news that SiriusXM will make a $480 million cash investment in Pandora and appoint three board members to the music platform once the deal closes.
The agreement is "a huge vote of confidence," Meister said, noting that media mogul John Malone is behind the SiriusXM deal.
Malone is chairman of Liberty Media, which owns 67.657 percent of SiriusXM shares, according to S&P Global Market Intelligence.
"Our sense is Pandora's worth a lot more today than it was yesterday as a result of this transaction," Meister said.
Corvex is the second largest shareholder in Pandora with an 8.64 percent stake, according to S&P Global Market Intelligence data as of March 31.
As a result of the Sirius deal, Pandora has agreed to terminate its deal with KKR and pay a fee of $22.5 million.
Separately on Friday, Eventbrite and Pandora entered an agreement to acquire Ticketfly for $200 million.