Pandora, maker of a personalised music and radio streaming app, will acquire “several key assets” from Rdio, which was described as “a pioneer in streaming music technology”, for $75 million.
Meanwhile, Rdio is filing for bankruptcy.
The acquisition will accelerate Pandora’s plan to offer fans greater control over the music they listen to, and strengthen its position “as the definitive source of music”, it said.
In addition to acquiring technology and intellectual property, some members of Rdio’s team will be offered roles with Pandora.
CEO Brian McAndrews said “adding live music experiences through Ticketfly was a transformative step. Adding Rdio’s impressive technology and talented people will fast-track new dimensions and enhancements to our service. I couldn’t be more optimistic about Pandora’s future and the future of music.”
Pandora is not acquiring the operating business of Rdio, rather it is acquiring the technology and talent to accelerate its own business strategy, it noted.
“The transaction is contingent upon Rdio seeking protection in the US Bankruptcy Court for the Northern District of California. Upon approval of the proposed transaction by the bankruptcy court, Rdio will wind down its service,” the statement added.
The Verge noted that as part of the bankruptcy process, Rdio will have to engage with competing offers if made.
The company also expects to offer an “expanded Pandora listening experience” by late 2016, pending its ability to obtain proper licenses.
According to Re/code, it wants to offer a new subscription service of its own. This will look more like Apple Music, which offers free music with limits, rather than like Spotify or YouTube, which let people listen to as much music as they want, on-demand and for free.
Meanwhile, YouTube launched a rival music app in the US earlier this week.