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Pandora Is Buying Rdio

RIP Rdio.

Last updated on November 16, 2015, at 5:22 p.m. ET

Posted on November 16, 2015, at 5:22 p.m. ET

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Rdio will soon be no more. On Monday afternoon the pioneering streaming music service agreed to sell its key assets to rival Pandora. The deal, which will cost Pandora $75 million, is contingent on Rdio filing for bankruptcy.

For Pandora, which has been struggling with slowing domestic growth, the move is intended to up the ante in an increasingly competitive marketplace. In a statement the company said it expects to use Rdio’s assets to “offer an expanded Pandora listening experience by late 2016." While Pandora is not acquiring Rdio's operating business, it is taking on a number of the company's employees to whom it has offered roles.

The acquisition suggests a major shift for Pandora’s music streaming business, which has long operated like a radio station, serving up playlists instead of full albums. The acquisition of Rdio’s on-demand streaming technology could go a long way to putting Pandora on the same level as on-demand streaming outfits like Spotify and Apple 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,” Pandora CEO Brian McAndrews said in a statement announcing the deal. "Wherever and however fans want to hear music, we intend to be their go-to destination."