Tech
Pandora to buy bankrupt Rdio
by Jeremy Mersereau
November 17, 2015
The streaming service will slowly cease service in all markets.
The ongoing Thunderdome of music streaming services just got a little smaller: Perennial fourth-place option Rdio is filing for Chapter 11 bankruptcy and is in the process of being acquired by internet radio and music discovery giant Pandora.
In a statement released earlier this week, Pandora announced it has acquired “key assets” from Rdio for a cool $75 million, and presumably will meld Rdio’s music streaming technology and sleek UI to its existing radio service. “The company expects to offer an expanded Pandora listening experience by late 2016, pending its ability to obtain proper licenses,” Pandora CEO Brian McAndrews said on a conference call with TechCrunch. The company expects to offer its new, shiny range of services in 2016.
What does this mean for Rdio’s existing subscribers? The company announced in an online post that the service will continue uninterrupted for the time being, but Pandora’s statement makes the company’s future clear: “Rdio will be winding down the Rdio-branded service in all markets.” Rdio CEO Anthony Bay is staying on board to solemnly go down with his ship aid with all the winding down.
The Rdio acquisition isn’t the first big stride Pandora has taken lately: Last month, it acquired online ticket seller Ticketfly for $450 million. Right now, Pandora only exists in three markets: The U.S., Australia, and New Zealand. With big plans obviously on the horizon, don’t expect Pandora’s reach to remain constrained for much longer.
