Pandora and Rdio, two of the most notable names in the music streaming industry, and ironically enough, two of Apple’s fiercest competitors, just announced Monday that they’ll be joining forces.
Reports suggest the former will acquire the latter’s “key assets” for a cool $75 million. According to the company’s press release, Pandora has gained a “considerable amount of unspecified technology and intellectual property,” in addition to the majority of Rdio’s employees having been offered roles at Pandora. In response to how the company plans to use Rdio’s assets, Pandora claims they are seeking to “offer fans greater control over the music they love.”
Added Chief Executive Officer of Rdio, Anthony Bay, ”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.”
Boasting the unique ability to listen to free, ad-supported radio stations that are centric to different artists and genres, Pandora has grown to amass an astonishing 80 million customers, as it continues to be one of the most widely used and notoriously popular streaming service options.
Alternatively, Rdio offered a very similar, ad-supported free listening tier, however the company also launched “Rdio Unlimited,” a service that enabled users to listen to any song on demand, as is the case with Spotify and Apple Music. With the company’s acquisition of Rdio’s assets, Pandora may be looking to extend its reach into the on-demand market to better compete with alternative streaming services.
The transaction is contingent on Rdio obtaining an official thumbs up from the United States Bankruptcy Court. If and when that pans out, Rdio will begin to wind down their self-branded operations in all markets, since Pandora is only acquiring assets and employees from Rdio, and not the whole brand.