Pandora has announced an agreement to acquire key platforms the Rdio music streaming service for a price of $75 million
Rdio – the music streaming service, is on the verge of filing for bankruptcy and Pandora – the music discovery platform, is lurking close, in order to acquire Rdio's key assets for a cash deal of $75 million.
“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 said in its statement.
In a move to consolidate its music streaming business, Brian McAndrews, Chief Executive Officer at Pandora said, “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…Wherever and however fans want to hear music, we intend to be their go-to destination.” The assents that Pandora plans to acquire include Rdio's technology services, IP (intellectual property) as well as some key employees, subject to the closing of the agreement. “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.
Meanwhile, Rdio also announced through a blogpost that it will soon be shutting down. Most reports suggest that the deal has already taken place but there is still a small chance that some other company can sweep in and buy Rdio. “While we are filing for bankruptcy, because the planned sale to Pandora is contingent on such a filing, by law Rdio is required to entertain competitive offers during the bankruptcy process that is being managed for us by Moelis & Company,” noted Rdio in a statement.
Source: BusinessWire
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