Rdio to shut down as Pandora acquires key assets

Pandora has announced that it will be acquiring several of Rdio's key assets over the coming days for $75 million in cash. Meanwhile, Rdio has filed for bankruptcy and will be shutting down eventually.

The "key assets" in Pandora's acquisition refers to Rdio's technology and the staff, most of which will be incorporated within Pandora but the service itself will be shutting down.

According to the Pandora press release, "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."

Rdio has assured its customers in its blog post that the service will continue operating for the time being until any further announcement.

Source 1 • Source 2