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Pandora To Buy Rdio Assets For $75M In Cash (techcrunch.com)

Posted by samzenpus on from the under-new-management dept.

An anonymous reader writes: Pandora is acquiring music subscription service Rdio for $75 million in cash. "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 said in a statement. TechCrunch reports: "That was fast: just as soon as it was reported that Pandora was in talks to buy Rdio, the two sides have confirmed that an acquisition is indeed taking place. Pandora has acquired "key assets" from Rdio for $75 million, the company has just announced. But as part of it, the Rdio service as we know it is tanking: the streaming service is shutting down and Rdio is filing for bankruptcy."

20 comments

  1. First question... by Anonymous Coward · · Score: 1

    ....who the hell is Rdio?

    Second question, why is its spelling completely stupid? That's worse than flickr and tumblr.

    1. Re:First question... by youngone · · Score: 2

      Second question, why is anything they have worth $75 million? It's bankrupt.

    2. Re:First question... by AK+Marc · · Score: 4, Insightful

      Bankruptcy is about cashflow, not assets. Most people would sell assets to prevent the bankruptcy, but that becomes a cashflow when you sell them.

      Looks like Rdio has lots of debts, and no means to pay them off, but something worth $75M, so Pandora is buying something for $75M and that payment will go to the creditors of Rdio. Those creditors could stop the sale, but in practice never do, as their share of $75M is much higher than their share of the bankrupt company if it were divided and sold off in smaller pieces.

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    3. Re: First question... by Anonymous Coward · · Score: 0

      They're buying the customer base, but shafting the artists by not paying for the music used to build the customer base. Typical corporate fuckery.

    4. Re:First question... by Anonymous Coward · · Score: 0

      Likely music licensing contractors. Pandora could be getting some at a steal.

    5. Re:First question... by youngone · · Score: 1

      their share of $75M is much higher than their share of the bankrupt company

      Which is why Pandora are nuts paying $75 M for it.

    6. Re:First question... by AK+Marc · · Score: 2

      If they pay $1 for it, the creditors would refuse the deal, opting instead to sell the parts individually. The price is one both Pandora and Rdio think is reasonable, yet everyone on Slashdot knows better than the paid professionals.

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      Learn to love Alaska
    7. Re:First question... by Anonymous Coward · · Score: 0

      Why it's Ronnie Dio of course! Who else, silly!

      https://en.wikipedia.org/wiki/Ronnie_James_Dio

      Didn't this he was worth that much tho...

    8. Re:First question... by Anonymous Coward · · Score: 1

      Rdio was the spiritual successor to Kazaa. What was nice about it was the fact that they had a large selection of albums to choose from, and one could save them (although encrypted) for offline playback. It also was useful for finding new stuff to listen to.

      Initially, they were the only game in town, as Spotify initially was snubbing the US market, but once they saw that Rdio was actually making inroads, decided to actually deign to have US customers.

      I am sorry to see them go, because less competition means more suckage across the board.

    9. Re: First question... by jarkus4 · · Score: 1

      No, they are not getting the customer base. They are buying only IP so patents, software etc. They are not taking over the service (its going to get closed) and their own similiar stuff will not appear for about a year more, so likely there will even be no indirect transfers of the "we are closing, but you may like..." kind

    10. Re:First question... by gl4ss · · Score: 1

      spotify clone that had a nice web client before spotify had web client.

      they also had an api, like spotify

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      world was created 5 seconds before this post as it is.
    11. Re:First question... by Anonymous Coward · · Score: 0

      First answer, streaming music service, they advertised on the Radio a bunch.

      Second answer, probably because rdio.com was cheaper to buy than radio.com. So at least they saved month there.

  2. Great! Thank you! by Anonymous Coward · · Score: 1

    Now I can finally push the stupid fucking paid for advertising spot Rdio button on my Roku remote and maybe, just maybe get Pandora...

  3. Spent too much money by tompaulco · · Score: 1

    I guess they spent too much money advertising on the radio.

    --
    If you are not allowed to question your government then the government has answered your question.
  4. In Cash? by Anonymous Coward · · Score: 0

    Somehow I really, really doubt that this transaction will involve $75M in cash. Unless it is to be delivered in unmarked bills in aluminum briefcases by goons with guns?

    Ya, that's be $75 million in cash, or cocaine, we'll take cocaine too... or high grade heroin.

  5. First thing I'd buy... by Anonymous Coward · · Score: 0

    a vowel.

    1. Re:First thing I'd buy... by Anonymous Coward · · Score: 0

      I dn't knw. Thnk abt all the bndwdth tht cld b svd by drppng a fw vwls. Sv th bndwdth, drp a vwl tdy!

  6. Video killed the Rdio star by sanf780 · · Score: 1
    I am not sure how other services compete, but the few times that I have used Rdio, the only advertisement they run were for their own subs. I do not believe such an internet related company can survive with just subscriptions.

    Note: I have discovered Rdio because it was one of the first Chromecast compatible applications

  7. I like my Rdio! by Anonymous Coward · · Score: 0

    I subscribed to Rdio a while ago. It had a decent price for multiple users, works well on my Android phone, and had/has a great music selection. I guess I'll have to look at alternatives now.