Pandora acquires Rdio for $75 million
After purchasing ticket distribution service Ticketfly in October for $450 million, Internet radio titan Pandora announced plans to acquire music streaming platform Rdio for $75 million. Rdio will file for bankruptcy and shut down its service after the acquisition, attributing the sale to the “state of the streaming marketplace.” Meanwhile, Pandora will receive “technological and intellectual property” as a part of the deal.
Pandora is purchasing key assets of the company, not the entity in its entirety, and plans to use acquired technology and staff from Rdio to enhance “an expanded Pandora listening experience by late 2016, pending its ability to obtain proper licenses.” The end goal, according to Pandora’s CEO Brian McAndrews, is to make Pandora a single destination for “radio, on-demand and live music.”
“We seek to be the definitive source for music discovery and enjoyment globally,” Andrews shared in a statement. Rdio corroborated, noting that one factor of the sale to the service was that Pandora “shares our passion for delivering the best possible music experience to music fans everywhere.” Eventually, Pandora will offer full on-demand paid subscription.
In their own statement, Rdio said it is “proud to have created an innovative and critically acclaimed global music streaming service. The addition of technology, product, IP and people from Rdio will unlock opportunities for Pandora—including speed to market for their on-demand services, global expansion and direct licensing relationships.” Together, Rdio and Pandora are projected to be one of the industry’s most powerful aggregates of streaming radio and subscription songs on demand.
H/T: Fact Mag