Pandora to Acquire Key Assets from Rdio

Pandora (NYSE: P), the world's most powerful music discovery platform, todayannounced an agreement to acquire several key assets from Rdio, a pioneer instreaming music technology. This will accelerate the company's plan to offerfans greater control over the music they love, strengthening Pandora'sposition 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 celebratemusic," said Brian McAndrews, chief executive officer at Pandora. "Whereverand however fans want to hear music, we intend to be their go-todestination." In addition to acquiring technology and intellectual property from Rdio,many members of Rdio's team will be offered roles with Pandora, subject toclose of the agreement. The company expects to offer an expanded Pandoralistening experience by late 2016, pending its ability to obtain properlicenses. More details about Pandora's future vision will be shared during an investorcall today at 1:30 p.m. PT. (Details below.) The purchase price is $75 million in cash, subject to certain purchase priceadjustments. "We are defining the next chapter of Pandora's growth story," continuedMcAndrews. "Adding live music experiences through Ticketfly was atransformative step. Adding Rdio's impressive technology and talented peoplewill fast-track new dimensions and enhancements to our service. I couldn'tbe more optimistic about Pandora's future and the future of music." "The Rdio team built an acclaimed product and technology platform that hasconsistently led innovation in the young streaming industry. I'm pleasedthat many members of the Rdio team will continue to shape the future ofstreaming music, applying our tradition of great design and innovativeengineering on an even larger stage with Pandora," said Anthony Bay, chiefexecutive officer of Rdio. The transaction is contingent upon Rdio seeking protection in the UnitedStates Bankruptcy Court for the Northern District of California. Uponapproval of the proposed transaction by the bankruptcy court, Rdio will bewinding down the Rdio-branded service in all markets. Pandora is notacquiring the operating business of Rdio, and is acquiring the technologyand talent to accelerate its own business strategy. The transaction issubject to the approval of the Bankruptcy Court, which will supervise anauction for the assets of Rdio, as well as other customary closingconditions. Listen to Pandora's investor call today at 1:30 p.m. PT. A live audiowebcast of the event will be available on the Pandora Investor Relationswebsite at http://investor.pandora.com. A live dial-in is available at (877)355-0067, or (443) 853-1239 internationally, using passcode 80010898. Areplay will be available at (855) 859-2056 or (404) 537-3406, using passcode80010898, and available via webcast replay until November 30, 2015.