Music streaming platform Pandora has announced it will acquire ‘key assets’ from rival music streaming service Rdio for $75 million. Rdio itself has filed for bankruptcy, with Pandora’s purchase being contingent upon the approval of the transaction by the bankruptcy court for the northern district of California.
With this purchase, Pandora will acquire ‘technology and intellectual property’ from Rdio, and will also bring many of Rdio’s team on board. Pandora plans to expand its services by late 2016, to become users’ go-to music enjoyment and discovery platform, in part by connecting users to live music events via its previous acquisition of Ticketfly.
In addition, Pandora plans to expand its subscription business to offer multiple tiers of subscriptions. In a recent conference call, Pandora CEO Brian McAndrews said the company’s acquisition of assets and employees from Rdio moves the company closer to this goal. Pandora is also working to secure additional agreements with music labels and publishers.
In a statement, McAndrews commented:
We are defining the next chapter of Pandora’s growth story. 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.
For now, Rdio will continue operating as normal, with updates expected in the coming weeks.
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