The news is out that Pandora is acquiring music subscription service Rdio for $75 million in cash. Here’s some details:
But as part of it, the Rdio service as we know it is tanking: the streaming service is filing for bankruptcy.
“The transaction is contingent upon Rdio seeking protection in the United States Bankruptcy Court for the Northern District of California. Upon approval of the proposed transaction by the bankruptcy court, Rdio will be winding down the Rdio-branded service in all markets,” Pandora noted in its statement.
Separately, Rdio said in a blog post that it will shut down in the coming weeks. More immediately, however, Rdio will continue uninterrupted.
So in other words, if the court doesn’t play ball the deal is dead. So, why would Pandora do this. Here’s why:
But, if Pandora’s pland does go ahead, it sounds like Pandora’s plan will be to create its own flavor of on-demand streaming to exist alongside its radio-style service. The assets it is planning to buy include technology and intellectual property. Additionally it’s taking on several members of Rdio’s team, but that will not include Anthony Bay, who is staying on with Rdio to wind down the business, Brian McAndrews confirmed on a conference call about the news today.
Good luck with that. There’s a bunch of these type of services already. I am not convinced that this can go the distance. But I am willing to be proved wrong.
Rdio Bought By Pandora…. Maybe
Posted in Commentary with tags Pandora, Rdio on November 16, 2015 by itnerdThe news is out that Pandora is acquiring music subscription service Rdio for $75 million in cash. Here’s some details:
But as part of it, the Rdio service as we know it is tanking: the streaming service is filing for bankruptcy.
“The transaction is contingent upon Rdio seeking protection in the United States Bankruptcy Court for the Northern District of California. Upon approval of the proposed transaction by the bankruptcy court, Rdio will be winding down the Rdio-branded service in all markets,” Pandora noted in its statement.
Separately, Rdio said in a blog post that it will shut down in the coming weeks. More immediately, however, Rdio will continue uninterrupted.
So in other words, if the court doesn’t play ball the deal is dead. So, why would Pandora do this. Here’s why:
But, if Pandora’s pland does go ahead, it sounds like Pandora’s plan will be to create its own flavor of on-demand streaming to exist alongside its radio-style service. The assets it is planning to buy include technology and intellectual property. Additionally it’s taking on several members of Rdio’s team, but that will not include Anthony Bay, who is staying on with Rdio to wind down the business, Brian McAndrews confirmed on a conference call about the news today.
Good luck with that. There’s a bunch of these type of services already. I am not convinced that this can go the distance. But I am willing to be proved wrong.
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