Shares of Pandora (p) fell over 9% Monday after the struggling music streaming service announced the replacement of CEO Brian McAndrews with founder Tim Westergren, effective immediately.
"With the team and strategy in place and execution underway, I am passing the baton on to Tim. I wish the Company all the best as it continues on its next phase of growth,” 56-year-old McAndrews, who has been with Pandora since 2013, said in a press release Monday.
50-year-old Westergren previously acted as the company's chief strategy officer from July 2004 to February 2014, before handing the position to Sara Clemens.
The company is also splitting up McAndrews' other positions. Pandora named CFO Mike Herring as company president and Jim Feuille as chairman of the board.
“Tim is the ideal CEO for Pandora as we embark on our next phase of growth. As the original founder, Tim carries the vision for how Pandora can transform the music industry and he is uniquely able to connect with listeners, music makers and employees,” Feuille said in a statement.
The news comes following on the heels of buyout rumors. In mid-February, it was reported that Pandora had hired Morgan Stanley to shop for potential buyers.
That was not long after Pandora revealed in its fourth-quarter results that it had lost $170 million in 2015 on 250 million registered users. The company added it was likely to lose an additional $80 million this year.
Although it's unclear where McAndrews is headed next, or why he left the company, the former CEO holds seats on the boards of The New York Times Co. and Grubhub.
Shares of Pandora have fallen close to 74% since their February 2014 highs, and are down 25% year to date.