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