Pandora to acquire “key parts” of Rdio for $75 million (RIP Rdio, hello Spotify-like Pandora functionality)
We just wrote about Beats Music shutting down and now here’s more streaming music news: Pandora has acquired “key assets” from Rdio, including technology and intellectual property. Rdio, as the Verge reports, has filed for bankruptcy. In a press release:
The purchase price is $75 million in cash, subject to certain purchase price adjustments.
“We are defining the next chapter of Pandora’s growth story,” continued McAndrews. “Adding live music experiences through Ticketfly was a transformative step. Adding Rdio’s impressive technology and talented people will fast-track new dimensions and enhancements to our service. I couldn’t be more optimistic about Pandora’s future and the future of music.”
“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,” said Anthony Bay, chief executive officer of Rdio.
The transaction is contingent upon Rdio seeking protection in the United States Bankruptcy Court for the Northern District of California. Upon approval of the proposed transaction by the bankruptcy court, Rdio will be winding down the Rdio-branded service in all markets. Pandora is not acquiring the operating business of Rdio, and is acquiring the technology and talent to accelerate its own business strategy. The transaction is subject to the approval of the Bankruptcy Court, which will supervise an auction for the assets of Rdio, as well as other customary closing conditions.
As referenced in the PR, Pandora also bought Ticketfly not too long ago.