Rdio is Shutting Down, Pandora Acquiring ‘Key Assets’ For $75 Million

New-Pandora-Radio

Two of the biggest Apple Music competitors are joining forces, with Pandora announcing its $75 million acquisition of “key assets” from Rdio, which is filing for bankruptcy.

According to the press release from Pandora, the company has gained unspecified “technology and intellectual property,” and a number of Rdio’s employees will be given roles at Pandora. Pandora plans to use Rdio’s assets to “offer fans greater control over the music they love,” with an expanded Pandora listening experience set to launch in late 2016.

Pandora is looking to become the “go-to destination” for wherever and however its fans want to listen to music. Chief Executive Officer of Rdio Anthony Bay said:

“The Rdio team built an acclaimed product and technology platform that has consistently led innovation in the young streaming industry. I’m pleased that many members of the Rdio team will continue to shape the future of streaming music, applying our tradition of great design and innovative engineering on an even larger stage with Pandora.”

Pandora has more than 80 million users and continues to be one of the most popular streaming music services. Pandora offers its users the ability to listen to free, ad-supported radio stations centered around particular artists or songs rather than offering on-demand listening like Apple Music.

With its acquisition of Rdio’s assets, Pandora may be angling to expand into the on-demand market to better compete with other streaming services.

The acquisition relies on Rdio obtaining permission for the transaction from the United States Bankruptcy Court. With approval, Rdio will shut down its Rdio-branded operations in all markets as Pandora is only acquiring assets and not the Rdio brand.

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  • Stephan

    Damn, sucks that Rdio has to file for bankruptcy protection. They were the first full-service streaming option available to Canadians, I’ve been a subscriber for around 3 years now. Spotify, Apple Music and others have since joined the mix in Canada but after brief trials with each I still felt Rdio offered the best package – rarely could I not find a song, they have great playlist management (especially on the fly “play later”, a great option for when you come across a song/album and don’t want to forget about it but don’t yet want to add it to your library), good syncing between mobile/desktop, beautiful design, all for $10/month. It paired nicely with my 6gb Rogers data plan. Hopefully they continue to operate in some capacity. If not, maybe they’ll publish a tool for exporting favorites/playlists to other services (a guy can hope). If they simply shut down I’ll probably hop to Spotify, since I don’t feel Apple Music is quite there yet.