Pandora Buys Out Rdio
November 16, 2015 at 2:27 PM (PT)
PANDORA has agreed to acquire several key assets from RDIO for $75 million in cash, subject to certain purchase price adjustments. RDIO will shut down after the sale, although many of RDIO's employees will be offered jobs at PANDORA.
BUSINESS INSIDER reports that PANDORA bought technology and intellectual property from RDIO so it could compete with the likes of SPOTIFY in the area of on-demand streaming. “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,” CEO BRIAN MCANDREWS said in an announcement.
PANDORA could also use RDIO's assets to expand internationally, as RDIO operated in more than 100 countries. The company expects to offer an expanded PANDORA listening experience by late 2016, pending its ability to obtain proper licenses.
“We are defining the next chapter of PANDORA’s growth story," MCANDREWS said. "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," RDIO CEO ANTHONY BAY said. "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.”
The $75 million purchase is contingent on RDIO seeking protection in the U.S. Bankruptcy Court for the Northern District of CALIFORNIA.
In response to RDIO's imminent demise, CUMULUS MEDIA issued the following statement: "As a result of RDIO's bankruptcy filing today in anticipation of PANDORA acquiring its technology and award-winning design, CUMULUS will no longer be airing radio ads for RDIO. CUMULUS stations now streaming through RDIO LIVE will remain available until the RDIO service winds down, which is expected to occur after the transaction is approved."