Pandora announced Monday is will acquire “several key assets” from on-demand streaming service Rdio. The deal will cost Pandora $75 million is contingent on Rdio filing for bankruptcy.
While details are scarce, the deal appears to be positioned as an acqui-hire that will facilitate and speed Pandora’s launch of an on-demand service. “Adding Rdio’s impressive technology and talented people will fast-track new dimensions and enhancements to our service,” said CEO Brian McAndrews in a statement.
The deal is expected to close in early 2016, according to a source familiar with the transaction. Upon the bankruptcy court’s approval of the proposed transaction, Pandora will acquire “technology and talent” and will wind down the Rdio-branded service, according to the press release.
“Given the state of the streaming marketplace, we have reached an agreement with Pandora… to purchase key assets from Rdio’s business, including intellectual property and technology,” writes Rdio in a statement on the proposal. “Both [companies] believe that a lower entry-priced subscription is a key to growing the market. The addition of technology, product, IP and people from Rdio will unlock opportunities for Pandora — including speed to market for their on-demand services, global expansion and direct licensing relationships.”
This is a developing story, more to come…