Pandora set to buy struggling Rdio for $75 million

Music streaming service Pandora is planning to acquire competing Rdio for $75 million, in an announcement made recently.

In a seperate annoucement, Rdio has said that their site will shut down within the next few weeks. However, it will continue to operate as normal for the time being.

This comes as Rdio plans to file for bankruptcy, due to low subscriber numbers and competition from services like Spotify, Google Play and Apple Music.

This acquisition will include “technology and intellectual property” from Rdio, along with many of their staff, but not their existing music licenses.

Pandora expects an “expanded listening experience” for their 78 million subscribers late next year. Their plan is to offer on-demand streaming alongside their existing radio-style services.

As Pandora is currently only available in the U.S., Australia and New Zealand, their purchase will give them access to over 100 more countries operated by Rdio.

“Adding Rdio’s impressive technology and talented people will fast-track new dimensions and enhancements to our service,” said Pandora chief executive officer Brian McAndrews, “I couldn’t be more optimistic about Pandora’s future and the future of music.”

Source: Variety/TechCrunch