OAKLAND (CBS SF) – Pandora says it is acquiring technology and intellectual property from Rdio and will add new features to its Internet music streaming service by late next year.
The $75 million cash deal depends on Rdio seeking bankruptcy protection and gaining court approval for the deal. Rdio will wind down its service.READ MORE: California Reopens: San Francisco Celebrates End Of COVID Restrictions; 'You Can Look At People, You Can Smile'
It would be the second big purchase by Pandora following its agreement to buy ticket seller Ticketfly last month for $450 million.
CEO Brian McAndrews said Monday that Pandora wants to redefine itself. It’s primarily a U.S. service today known for its Internet radio. McAndrews wants to make it a global operation, add live events and give users more control.
Services like Spotify that let you request specific songs typically cost $10 a month.
Pandora radio is free, with ads. There’s a $5-a-month option that strips out ads.READ MORE: UPDATE: Crews Respond To Structure Fire In Oakland
The deal also follows steps the company has taken to repair its frayed relationship with the music industry. Earlier this month, it reached a direct licensing deal for songwriting rights with Sony/ATV, the largest music publisher in the world. It settled a lawsuit for $90 million last month over songs from before 1972. It also suspended a plan to use a South Dakota radio station to lower its royalty payments, and agreed to retroactive pay to artists.
A more collaborative relationship with music makers puts it in a stronger position to expand, McAndrews said.
Pandora Media Inc. shares rose 3 cents to $13.45 in after-hours trading.MORE NEWS: CA Election Officials Want Newsom Recall Held After Mid-September
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