Pandora is buying Rdio Music technology and its intellectual property. The $75 million in cash purchase is meant to accelerate its own bussiness strategy by rely on the technology on Rdio. On the deal, Pandora is not acquiring the operating business of Rdio, but many members of Rdio’s team will be offered roles with Pandora. The purchase happened when Rdio was 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.
“We are defining the next chapter of Pandora’s growth story,” continued 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.”
“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.
Rdio is known for their streaming music service that is available in different platforms, and even in webs of 85 countries. This acquisition can bring Pandora to be able to compete with Spotify and Apple Music.