Rdio which was launched by former Skype founders Niklas Zennstrom and Janus Friis in 2010 has announced bankruptcy, and will be filing for protection in US bankruptcy court in California.
Once the court approves bankruptcy, Rdio will go ahead to shut down its music streaming services in 100 countries including India. The service will continue until then, said Rdio.
The service was introduced in India after the company acquired local streaming service Dhingana in March last year.
Rival Pandora To Acquire ‘Key Assets’ From Rdio
Additionally, Pandora is also set to acquire “several key assets” from Rdio for $75 million in cash. These assets include Rdio’s technology, intellectual property and talent.
The company also revealed that an undisclosed number of employees from Rdio will be joining Pandora soon.
Pandora will not be acquiring Rdio’s operating business or any of its licensing deals; Rdio’s CEO Anthony Bay will not be moving to Pandora.
Pandora which is live in three markets—US, Australia and New Zealand, plans to launch its own version of subscription-based on-demand music streaming service with the newly acquired assets
However, it isn’t clear whether the new service by Pandora will be introduced in India.
Also, Pandora has agreed to the terms of acquisition—the acquisition is subjected to approval from the US Bankruptcy Court which will supervise an auction for Rdio’s assets.