Pandora Is Buying "Key Assets" of Rdio as the Streaming Service Shuts Down

Pandora bought Rdio for $75 million in cash.

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According to Variety, Pandora has bought Rdio for $75 million in cash and is acquiring “key assets” that’ll include technology and intellectual property. To be clear, Pandora is not acquiring the operating business of Rdio, but just the technology and talent to execute their business strategy.

As part of the deal, Rdio will file for bankruptcy, presumably to get rid of any accumulated debt.

“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 noted in its statement.

Rdio CEO Anthony Bay won’t be joining Pandora’s team, so that’ll mean Rdio’s team will have the opportunity to get offered positions at Pandora.

In a separate statement by Rdio, they said its service will not be interrupted today and will have more updates in the coming weeks.

Pandora CEO Brian McAndrews said during an investor’s call after the announcement that the company’s goal was to offer consumers “radio, on-demand and live music” all in one music streaming service. “We seek to be the definitive source for music discovery and enjoyment globally,” he said, adding that Pandora will offer “full on-demand paid subscription” over time. “We plan to substantially broaden our subscription business.”

With Spotify, Tidal and Apple Music winning with on-demand services, it'll be interesting to see where Pandora's purchase of Rdio's assets will take them.

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