Pandora will acquire “key assets” from streaming music technology company Rdio for $75 million in cash. The move comes as Rdio revealed it sought bankruptcy protection in the United States Bankruptcy Court for the Northern District of California. Pandora will be gaining technology, product, intellectual property, and people from Rdio.
In an email provided to us by Rdio, the company said that the acquisition will provide a stronger ad-supported radio service experience. “The result will be the industry’s best combination of streaming radio and subscription songs on demand.”
Many of Rdio’s employees will be retained at Pandora but some have been laid off.
In a canned statement, Pandora’s chief executive Brian McAndrews said: “Whether streaming through radio, on-demand or in-person at live events, Pandora is building the definitive source for fans to discover and celebrate music. Wherever and however fans want to hear music, we intend to be their go-to destination.”
Founded in 2008, Rdio allows on-demand access to over 12 million songs and has raised $125.7 million in funding from Atomico, Skype, Mangrove Capital Partners, and famed entrepreneur Janus Friis. In October 2014, the company’s parent entity Pulser Media raised $108 million to fund Rdio — so where did that money go? Its service had been available in 60 territories worldwide.
Rdio competed against many services such as Spotify, Apple Music, Rhapsody, MOG, and, of course, Pandora. Interestingly enough, when Apple entered the music streaming service, Rdio sent a note that read in part: “Welcome, Apple. Seriously.” Welp.
Shares in Pandora closed down 0.15 percent at $13.42 in normal trading, but have fallen 0.50 percent more in after-hours.
More to come. Please refresh for updates.
Rdio is the ground-breaking digital music service that is reinventing the way people discover, listen to, and share music. With on-demand access to over 12 million songs, Rdio connects people with music and makes it easy to search for … read more »
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