Kennedy will be maintaining his position up until Pandora is able to find a replacement. The curious thing about his resignation is that it comes as Pandora reported a very good fiscal year in 2012, with its Q4 revenues increased by 54%, reaching $125 million.
“As part of our board discussions of the road that lies ahead, I reached the conclusion and advised the board that the time is right to begin a process to identify my successor,” declared Joe Kennedy on Tuesday.
The company’s stock increased 20%, despite the rumors that Apple intends to enter the online music streaming business, making the investors a little bit nervous as Apple intends to undercut Pandora on price.
Recently, Pandora restricted the free streaming of music for mobile users at 40 hours per week, from being previously unlimited but they claimed that this harsh measure affects only 4 percent of its active listeners. The move was made after the royalty rates from the record companies were announced to be increased by up to 9% in 2013.