Pandora Media Inc. (P)  has signaled to investors that it's serious about remaking the internet radio company. And the market has applauded.

Shares of the Oakland, Calif., company were rising 4.7% in after-hours trading on Monday, Aug. 14, after announcing that Roger Lynch, CEO of Sling TV, the online pay-TV service owned by Dish Network Corp. (DISH) , will succeed Tim Westergren as CEO. (Naveen Chopra has been interim chief executive since June.) Lynch's first day is scheduled for Sept. 18, the company said in a statement.

Pandora closed on Monday at $8.07, its shares having fallen 39% over the past 12 months.

Lynch's hiring comes several weeks after Westergren was pushed out of the company that he co-founded and satellite radio operator Sirius XM Holdings Inc. (SIRI) invested $480 million in Pandora. Westergren's tenure had been criticized by Greg Maffei, CEO of Liberty Media Corp. (FWONA) , which controls Sirius XM, for spending millions of dollars building an on-demand music service to rival Spotify Ltd., Apple (AAPL) Music, Alphabet Inc.'s (GOOGL) YouTube and Amazon (AMZN) Prime Music, among others.

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