The streaming music business is going to be losing one of its major players.
Subscription service Rdio plans to file for bankruptcy. Many of its assets, including technology and intellectual property, will be acquired for $75 million by Pandora, which also plans to offer jobs to many of Rdio’s employees, the Internet radio company announced in a press release.
“We are defining the next chapter of Pandora’s growth story,” Brian McAndrews, Pandora’s CEO, said in the statement. “Adding Rdio’s impressive technology and talented people will fast-track new dimensions and enhancements to our service.”
The deal is contingent on Rdio’s bankruptcy filing and approval of the bankruptcy court.
Streaming services — whether Internet radio and subscription on-demand — have become an increasingly important part of the music business, with a growing share of overall revenue. But streaming companies including Pandora and leader Spotify have struggled to turn streaming popularity into profits.
Photo: The front desk of the Pandora Internet radio company in Oakland, Calif. (Deeba Yavrom/Bay Area News Group)
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