- Pandora (NYSE:P) has jumped 3.2% after hours as a 13D filing by Corvex Management shows it sent a letter to the company's board urging it to talk with banks about maximizing value.
- "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 writes, asking for the company to undertake a process "including the execution of a sales process."
- The company hasn't been able to translate a great product into a great business, Corvex adds, pointing to share price underperformance, poor equity currency, "questionable" capital allocation decisions (including a "rich price" paid for TicketFly), poor investor communications, lack of senior management equity ownership and substantial stock-based comp.
- In the filing, Corvex disclosed a beneficially held stake of 8.3%.
- Now read Seeking Alpha's Market Challenge: Pondering Pandora »