Rdio winds up as Pandora picks up the pieces

Pandora has forced Rdio to file for bankruptcy as part of a deal to purchase a number of its key assets.

The music streaming platform announced the deal late on Monday night UK time, while Rdio announced it will shut down operations in the coming weeks.

Pandora will pay $75m (£49.3m) for technology and intellectual property to “accelerate development of new capabilities” and it will also offer a number of roles to members of the existing Rdio team.

However, the agreement remains subject to the company filing for bankruptcy, and it will not take on the whole operating business.

“We are defining the next chapter of Pandora’s growth story,” said Pandora chief executive officer Brian McAndrews.

“Adding Rdio’s impressive technology and talented people will fast-track new dimensions and enhancements to our service.”

Pandora said it expects to offer an expanded listening experience by late 2016.

In a statement from Rdio, the company said it is proud to have created an “innovative and critically acclaimed global music streaming service”.

“The companies visions’ share much in common. Both believe that an ad-supported radio service experience is the right free streaming model. Both believe that a lower entry-priced subscription is a key to growing the market.”

However Rdio said that while it is filing for bankruptcy as part of the deal, that doesn’t stop the company accepting another offer for the business or assets.

“By law Rdio is required to entertain competitive offers during the bankruptcy process that is being managed for us by Moelis & Company.”

A survey by Edision Research at the beginning of 2015 showed Pandora held 45% of the US music streaming market followed by iHeartRadio on 17%, while Rdio didn’t register in the survey of 2,002 respondents.