Music discovery platform, Pandora has completed its acquisition of technology and intellectual property from troubled digital music service provider, Rdio. Pandora recently announced that it is acquiring key assets from Rdio for $75 million in cash. Rdio has filed for bankruptcy protection in the United States and has begun to wind down its business and discontinued its service as of December 22. The acquisition by Pandora will see nearly 100 former Rdio employees joining its product, engineering and content licensing teams.
Pandora expects that the move will accelerate its plan to substantially expand subscription-based, on-demand version of its music-streaming service and roll out a multi‐tier product offering by late next year. In shifting its business model, the provider acknowlegdes that advertising revenue alone will not be enough to offset its increasing content acquisition costs.
