Rdio Files for Bankruptcy as Pandora Absorbs Company for $75 Million
Published Nov 16, 2015It looks like the first major service has fallen out of the great streaming wars of 2015, as Rdio has filed for bankruptcy and will soon be acquired by popular online radio app Pandora.
A press release revealed that Pandora will use this acquisition to claim its stake in the streaming game, adding Rdio-like services to its site. Pandora will pay $75 million US to pick up the pieces from Rdio, including the company's technology and intellectual property.
For those unfamiliar with the service, Rdio offered a similar experience as competitors Apple Music and Spotify, giving listeners unlimited streaming access to more than 30 million songs.
Pandora's chief executive officer Brian McAndrews said, "Whether streaming through radio, on-demand or in-person at live events, Pandora is building the definitive source for fans to discover and celebrate music.... Wherever and however fans want to hear music, we intend to be their go-to destination."
Anthony Bay, chief executive officer of Rdio, added, "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."
The press release also suggested that many of Rdio's employees will be offered jobs at Pandora. Further, their new service is expected to launch in late 2016, but Rdio will shut down its existing service in all markets.
While Rdio was available in Canada and in over 100 other countries, Pandora is only available in the U.S., Australia and New Zealand. However, reports indicate that Pandora is aiming to expanded internationally, and the UK is apparently an early target.
Rdio was founded in 2010 by Skype's co-founders Janus Friis and Niklas Zennstroem.