Pandora has announced plans to acquire its soon-to-be bankrupt rival Rdio.
The move will see the online radio provide acquire Rdio’s “key assets” for $US75 million, meaning it will be able to also offer on-demand music streaming and begin to take on heavyweights like Spotify and Apple Music.
Rdio’s filing in the US Bankruptcy Court of San Francisco shows the struggling service is $US220 million in debt and is losing $US2 million every month, as HypeBot reports.
In a statement, Pandora CEO Anthony Bay says the company plans to take technology and IP from Rdio following its bankruptcy.
“The Rdio team built an acclaimed product and technology platform that has consistently led innovation in the young streaming industry,” Bay says.
“I’m pleased that many members of the Rdio team will continue to shape the future of streaming music, applying our tradition of great design and innovative engineering on an even larger stage with Pandora.”
“This will accelerate the company’s plan to offer fans greater control over the music they love, strengthening Pandora’s position as the definitive source of music.”
Rdio says its service will be shutting down in the coming weeks, but is currently “uninterrupted”.
“We will have more updates in the coming weeks on what this process means for your Rdio account, but for the time being the service continues unchanged.” a statement says.
“We couldn’t be more proud of the entire Rdio team and the product we have built. We’re honoured to have connected so many listeners around the world with the music they love.
“We thank you for your continued support over the years and look forward to bringing you even better music experiences in the future as part of the Pandora team.”