Pandora to Acquire “Key Assets” From Rdio
by Paul McLane on 11.16.2015 Radio World
Pandora will spent $75 million to acquire “several key assets” from
streaming company Rdio. The deal is contingent on Rdio seeking
protection in U.S. Bankruptcy Court, Pandora said.
In a statement, Pandora said this agreement “will accelerate the
company’s plan to offer fans greater control over the music they love,
strengthening Pandora’s position as the definitive source of music.” The
announcement was made by CEO Brian McAndrews.
The company said it will acquire technology and intellectual property
from Rdio, and that “many members of Rdio’s team will be offered roles
with Pandora, subject to close of the agreement.” It believes it will be
able to offer “an expanded Pandora listening experience by late 2016,
pending its ability to obtain proper licenses.”
Pandora recently acquired events and ticketing company Ticketfly.
It quoted Rdio CEO Anthony Bay saying, “The Rdio team built an acclaimed
product and technology platform that has consistently led innovation in
the young streaming industry. 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.” Bay, a former exec for Amazon, Microsoft and Apple,
had been brought in in late 2013, with big expectations.
If it wins approval of the bankruptcy court, Rdio “will be winding down
the Rdio-branded service in all markets,” it said. The Bankruptcy Court
will supervise an auction for the assets of Rdio.
Pandora emphasized it is not acquiring the operating business of Rdio,
but “is acquiring the technology and talent to accelerate its own
business strategy.”
Rdio was founded by Janus Friis, co-creator of Skype, in August 2010,
and is headquartered in San Francisco. According to its website, it
offers a catalog of over 35 million songs in 86 countries. The company
last spring had announced a low-cost $3.99/month subscriber option in an
effort to expand its footprint.
One of the notable investors in Rdio is Cumulus. It is not immediately
clear what the impact on that company will be. Pandora has an investor
call set up for this afternoon.
See more at:
http://www.radioworld.com/article/pandora-to-acquire-%e2%80%9ckey-assets%e2%80%9d-from-rdio/277528#sthash.tZIHgBKE.dpuf
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*================================================ Duane Whittingham -
N9SSN (ARES/RACES, EmComm, Skywarn & Red Cross)
http://www.radiodude.info ================================================*
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