Rdio files for bankruptcy, Pandora to acquire ‘key assets’ from streaming service

Pandora said it plans to offer jobs to “many” of Rdio’s employees.

The transaction is subject to the approval of the Bankruptcy Court, which will supervise an auction for the assets of Rdio.

“We couldn’t be more proud of the entire Rdio team and the product we have built”.

“We seek to be the definitive source for music discovery and enjoyment globally”, he said, adding that Pandora would offer “full on-demand paid subscription” over time.

“We have an ambitious plan for our future”, Brian P. McAndrews, the chief executive of Pandora, said Monday in a conference call with investors.

Though Pandora has always been the leader in music streaming, the company has come under intense pressure over the past year from the popularity of on-demand listening services like Spotify and Apple Music.

Pandora Media Inc provides internet radio services on smartphones, tablets, traditional computers and vehicle audio systems, as well as other internet-connected devices.

MBW has previously speculated that Pandora’s new licensing deal with Sony/ATV may involve elements related to interactive streaming. Instead the service plays personalized radio and allows a limited number of skips per hour. I may have to give it a try again in 2016, after Pandora integrates Rdio’s technology.

Not long after Apple Music officially entered the streaming music service market after its three-month trial period, it looks as though one of its competitors its on its way out. Rdio also aims to help users discover new music, by telling you when a band you like has a new recording, and helping surface artists, albums, and playlists that your friends are enjoying. Spotify, the on-demand streaming leader, has 75 million users, 20 million of whom pay subscription fees to remove ads from the service. But Pandora, a public company, has struggled to turn a profit, and seen it’s user growth slow in recent years.

By law Rdio is required to entertain competitive offers when it files for bankruptcy, so the planned sale to Pandora, while seemingly a done deal, will not be finalized until that process is complete.

Pandora tried to play down the fact that it’s buying assets from a failing business and insisted that it’s in a “much better position” than Rdio in using those assets to create a streaming business.

“We’re very excited to continue our tradition of delivering handsome and powerful music experiences to an even larger audience”, Rdio said in a blog post.