With the number of online music streaming services floating around, there's seemingly an option out there for any type of music listener. Inevitably some of these services will be similar. Pandora provides Internet radio stations that mold to your tastes. Spotify provides an online library that lets you play what you want on demand.
Rdio lets you listen to radio stations that adapt to your taste. Sound familiar? Pandora apparently thinks so, because the company is now buying Rdio.
But this isn't just a matter of Pandora shopping around for music providers to consume. Rdio is filing for bankruptcy and shutting down its service. Pandora is paying $75 million to snatch up the company's assets.
So the Rdio brand will eventually disappear. As for Pandora, the service could potentially integrate some of Rdio's on-demand capabilities. This could help it stand up in such an increasingly competitive field, one that music giant Apple has decided it's ready to take on for itself.
Pandora to Acquire Key Assets from Rdio
Adding technology, IP and talent to accelerate development of new capabilities; Pandora hosting investor call to outline growth strategy at 1:30 p.m. PT today
OAKLAND, Calif.--(BUSINESS WIRE)--Nov. 16, 2015-- Pandora (NYSE: P), the world’s most powerful music discovery platform, today announced an agreement to acquire several key assets from Rdio, a pioneer in streaming music technology. This will accelerate the company’s plan to offer fans greater control over the music they love, strengthening Pandora’s position as the definitive source of music.
“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, chief executive officer at Pandora. “Wherever and however fans want to hear music, we intend to be their go-to destination.”
In addition to acquiring technology and intellectual property from Rdio, many members of Rdio’s team will be offered roles with Pandora, subject to close of the agreement. The company expects to offer an expanded Pandora listening experience by late 2016, pending its ability to obtain proper licenses.
More details about Pandora’s future vision will be shared during an investor call today at 1:30 p.m. PT. (Details below.)
The purchase price is $75 million in cash, subject to certain purchase price adjustments.
“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.
The transaction is contingent upon Rdio 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. Pandora is not acquiring the operating business of Rdio, and is acquiring the technology and talent to accelerate its own business strategy. The transaction is subject to the approval of the Bankruptcy Court, which will supervise an auction for the assets of Rdio, as well as other customary closing conditions.
Listen to Pandora’s investor call today at 1:30 p.m. PT. A live audio webcast of the event will be available on the Pandora Investor Relations website at http://investor.pandora.com. A live dial-in is available at (877) 355-0067, or (443) 853-1239 internationally, using passcode 80010898. A replay will be available at (855) 859-2056 or (404) 537-3406, using passcode 80010898, and available via webcast replay until November 30, 2015.
- Rdio blog