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Pandora to Buy Rdio's Greatest Bits for $75M

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Nov 16, 2015, 4:41 PM by Eric M. Zeman

Pandora today said it has agreed to purchase "several key assets" from Rdio for $75 million. Both Pandora and Rdio offer online and mobile music services. Pandora will be picking up Rdio's technology, intellectual property, and select members of Rdio's staff. The transaction does not including Rdio's operating business. The deal is contingent on Rdio declaring bankruptcy in California, and for a bankruptcy court there to approve the Pandora-backed transaction. If approved, Rdio will begin to wind down its branded music service in all markets ahead of the acquisition's closing. Pandora said it expects to use Rdio's assets to offer an "expanded service" by late 2016. Pandora and Rdio compete in a busy market led by Spotify, Google, Apple, Amazon, and others. Apple recently expanded its monthly music service to Android devices, while Google recently expanded its music service through a dedicated YouTube app.

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