Audio Video News

Pandora has announced an agreement to acquire “several key assets” from the Internet radio/on-demand and streaming platform Rdio, which is filing for bankruptcy.

In addition to acquiring technology and intellectual property, Pandora said members of Rdio’s team will be offered roles with Pandora, subject to the close of the agreement, which must be approved by the United States Bankruptcy Court for the Northern District of California.

“Adding Rdio’s impressive technology and talented people will fast-track new dimensions and enhancements to our service,” said Pandora CEO Brian McAndrews in a press release distributed yesterday.

The purchase price is $75 million in cash and the press statement made it clear that Pandora is not acquiring the operating business of Rdio. The service expects to offer an “expanded listening experience” by late 2016, pending "its ability to obtain proper licenses."

Industry observers say the deal could help Pandora transition into a global streaming music service. Rdio has a foothold in 86 countries whereas Pandora is available only in the U.S., Australia, and New Zealand.

From Variety:

McAndrews said during an investor call following the announcement Monday that the company’s goal was to eventually offer “radio, on-demand and live music” all under one roof. He went on to describe Pandora’s existing personalized radio business business as “step one” for the company. “We seek to be the definitive source for music discovery and enjoyment globally,” he said, adding that Pandora would offer “full on-demand paid subscription” over time. “We plan to substantially broaden our subscription business,” he said.

From The Verge:

The move to pair streaming music with live events mirrors moves by Spotify, which announced last week a new feature to help artists better sell concert tickets, and Tidal, which has been putting on live events starring the mega stars who are also co-owners of the business—a sort of real life version of a streaming service.