Rdio to file bankruptcy, sell key assets to Pandora for $75 million

By Caroline Salls

Pittsburgh, Nov. 16 – Rdio will file bankruptcy in the U.S. Bankruptcy Court for the Northern District of California as part of an agreement to sell several of its key assets to Pandora for $75 million, according to a Pandora news release.

In addition to acquiring technology and intellectual property from Rdio, Pandora said many members of Rdio’s team will be offered roles with Pandora, subject to close of the agreement. Pandora said it expects to offer an expanded listening experience by late 2016, pending its ability to obtain proper licenses.

Upon approval of the proposed transaction by the bankruptcy court, Rdio will be winding down the Rdio-branded service in all markets. Pandora said it is not acquiring the operating business of Rdio, and Pandora is acquiring the technology and talent to accelerate its own business strategy.

Pandora is an Oakland, Calif.-based music delivery platform. Rdio is a San Francisco-based licensed music service.

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