Rdio files for bankruptcy, Pandora to acquire 'key assets' from streaming service | EW.com

Music

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

( Andrew Harrer/Bloomberg via Getty Images)

This year has been a massive one for music streaming services, with Apple Music, TIDAL, and YouTube Red launching, and established companies like Spotify upping their game with new features. But the end of the road has come for Rdio, the minimalist service launched by Skype’s founders in 2010. Pandora, another titan in the streaming sector, announced plans to acquire “several key assets from Rdio” as it files for bankruptcy.

“This will accelerate the company’s plan to offer fans greater control over the music they love, strengthening Pandora’s position as the definitive source of music,” read a press release explaining the news. “The company expects to offer an expanded Pandora listening experience by late 2016, pending its ability to obtain proper licenses.”

According to the press release, Pandora’s planned acquisitions will cost $75 million in cash. Pandora also plans to offer roles to some former Rdio employees.

“The Rdio team built an acclaimed product and technology platform that has consistently led innovation in the young streaming industry,” said Rdio’s chief executive officer Anthony Bay in the release. “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.”

Rdio has faced challenges from all sides in 2015. When Apple joined the streaming fray with Apple Music in June, the Rdio commented about its excitement for “responsible competition in the massive effort to make music available legally for anyone to enjoy anytime, anywhere.” But in the past week alone, Spotify teamed with Songkick — previously a Rdio partner — for a new concert-locating feature and YouTube launched its highly-anticipated streaming service.