The music wars have claimed another victim: Rdio is dead.
Following a rumour post from Variety that Pandora — the lean-back radio-style music streaming service — would buy Rdio for a cool $US75 million in cash, Pandora made its official announcement.
The announcement says that Pandora would buy “key assets” from Rdio. That’s right: while you weren’t looking, Rdio went bankrupt and died.
In the final paragraph of the release, Pandora says that the deal to acquire key assets from Rdio is subject to the former getting bankruptcy protection. If it gets it, the Rdio service will be killed off in “all markets”. Here’s the line (emphasis added):
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 is not acquiring the operating business of Rdio, and is acquiring the technology and talent to accelerate its own business strategy. The transaction is subject to the approval of the Bankruptcy Court, which will supervise an auction for the assets of Rdio, as well as other customary closing conditions.
So that’s that. Rdio is dying, and Pandora will absorb its power.
Pandora will nick Rdio’s streaming gear, and bring over a few of its staff, however:
In addition to acquiring technology and intellectual property from Rdio, many members of Rdio’s team will be offered roles with Pandora, subject to close of the agreement. The company expects to offer an expanded Pandora listening experience by late 2016, pending its ability to obtain proper licenses.
RIP Rdio.