Pandora Buys Rdio Assets For $75 Million
Reports are circulating that streaming service Rdio has filed bankruptcy and is shutting down. Pandora has stepped in and bought $75 million worth of Rdio's assets and will hire some of the company's employees but will not save the service from shutting down. Pandora, which has been in existence for over 15 years, is buying technology and intellectual property assets from Rdio as it hopes to improve user growth that has slowed over the years. "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," said Brian McAndrews, CEO at Pandora in a statement. "Wherever and however fans want to hear music, we intend to be their go-to destination."
The Verge speculates that Rdio's business model "could help Pandora transition into a more modern and global streaming music service." The report cites Rdio's presence as an international brand and the praise it has received for it on-demand service. Pandora is currently available only in the United States, New Zealand and Australia. Rdio, on the other hand, is used in 100 countries.
"We are proud to have created an innovative and critically acclaimed global music streaming service," Rdio officials said in a statement. "Given the state of the streaming marketplace, we have reached an agreement with Pandora--a leader in music streaming that shares our passion for delivering the best possible music experience to music fans everywhere--to purchase key assets from Rdio's business, including intellectual property and technology."