Pandora has announced that it has agreed to acquire several key assets from beleaguered streaming service Rdio for $75 million. The streaming service will then begin the process of filing for bankruptcy in Northern California and slowly shutter its doors for good in all markets.
As first reported by Variety, the Pandora will acquire the "technology and intellectual property" from Rdio, as the Spotify challenger files for bankruptcy, presumably to try and shed its mounting debt.
"We are defining the next chapter of Pandora's growth story," said Pandora CEO Brian 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."
Andrews in an investor call after the announcement said the company's goal was the offer "radio, on demand and live music" and that the current radio business was just "step one" of the current business model. He added that Pandora would offer "full on-demand paid subscription" over time.
Many members of the Rdio team will be offered roles with Pandora, though the CEO Anthony Bay will not continue on through the forthcoming transition.
"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.
Pandora is looking to expand internationally beyond its current confines of the U.S., Australia and New Zealand according to Bloomberg. Rdio has a strong international presence, operating in over 100 countries, but it doesn't seem likely that Pandora will use Rdio's international footprint to expand its reach.
