OAKLAND, Calif.�Pandora has announced an agreement to acquire several key assets from Rdio, a pioneer in streaming music technology. The purchase price is $75 million in cash, subject to certain purchase price adjustments.
In addition to acquiring technology and intellectual property from Rdio, many members of Rdio�s team will be offered roles with Pandora, subject to close of the agreement.
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, Rdio will be winding down their service in all markets. Pandora is not acquiring the operating business of Rdio, but it is acquiring the technology and talent to accelerate its own business strategy.
�We are defining the next chapter of Pandora�s growth story,� said Brian McAndrews, Pandora�s CEO. �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.�
Pandora will offer Rdio�s on-demand streaming platform (which lets users instantly pick what songs they want to hear) alongside its radio-style service (which plays program-selected music based on genres, or �stations�), according toqz.com. If all goes according to plan, Pandora�s listeners will be able to access the new feature�or what company executives call an �expanded Pandora experience��late next year.
Up until now, Pandora has championed its radio-centered user experience as wholly unique from the other streaming services out there. �But this deal fills a real need considering that Pandora saw its stock sink 40% in one day after investors got spooked over the sudden success of Apple Music, and that it currently only offers a passive listening experience, while many others�including Apple Music and Spotify�offer both.