Pandora P, the world's most powerful music discovery platform, today
announced an agreement to acquire several key assets from Rdio, a pioneer in
streaming music technology. 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.
"Whether streaming through radio, on-demand or in-person at live events,
Pandora is building the definitive source for fans to discover and celebrate
music," said Brian McAndrews, chief executive officer at Pandora. "Wherever
and however fans want to hear music, we intend to be their go-to
destination."
In addition to acquiring technology and intellectual property from Rdio,
many members of Rdio's team will be offered roles with Pandora, subject to
close of the agreement. The company expects to offer an expanded Pandora
listening experience by late 2016, pending its ability to obtain proper
licenses.
More details about Pandora's future vision will be shared during an investor
call today at 1:30 p.m. PT. (Details below.)
The purchase price is $75 million in cash, subject to certain purchase price
adjustments.
"We are defining the next chapter of Pandora's growth story," continued
McAndrews. "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."
"The Rdio team built an acclaimed product and technology platform that has
consistently led innovation in the young streaming industry. 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," said Anthony Bay, chief
executive officer of Rdio.
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. The transaction is
subject to the approval of the Bankruptcy Court, which will supervise an
auction for the assets of Rdio, as well as other customary closing
conditions.
Listen to Pandora's investor call today at 1:30 p.m. PT. A live audio
webcast of the event will be available on the Pandora Investor Relations
website at http://investor.pandora.com. A live dial-in is available at (877)
355-0067, or (443) 853-1239 internationally, using passcode 80010898. A
replay will be available at (855) 859-2056 or (404) 537-3406, using passcode
80010898, and available via webcast replay until November 30, 2015.
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