Pandora Acquires Bankrupt Rdio For $75 Million In Bid To Compete With Spotify, Apple Music
Consolidation in streaming music has begun, though perhaps a bit earlier than expected. Pandora is acquiring "the technology and intellectual property" of streaming music service Rdio for $75 million, and will use the assets to compete with Spotify, Apple Music and others.
For Pandora, whose user growth has slowed to 3%, it is a bid to find new avenues of expansion. Pandora is also eyeing international growth, and several news outlets have reported ongoing negotiations with major labels. The Rdio acquisition also enables Pandora to enter new markets with a more robust offering.
“We seek to be the definitive source for music discovery and enjoyment globally,” Pandora CEO Brian McAndrews told Variety. The music streamer plans to offer “full on-demand paid subscription” over time. “We plan to substantially broaden our subscription business.”
McAndrews said that Pandora chose Rdio because it had “the best product” in subscription streaming. “We just were really enamored with their product.”
Rdio Team To Join Pandora
In addition to acquiring technology and intellectual property, many members of Rdio’s team will be offered roles with Pandora.