Music streaming is a difficult thing to get right - just ask Pandora and Rdio.
With huge competitors - such as Apple Music, Spotify, and YouTube Music - dominating the market, it's hard for lesser-known services, like Rdio, to get ahead and make a difference. Pandora, on the other hand, which has been around for years, has managed to keep its head above water, likely because it is about streaming stations rather than letting users play songs on-demand.
Here's the thing, though: Pandora needs to continue growing in order to stay relevant, and so it wants to expand internationally in the coming months. Currently, Pandora is only available in the US, Australia, and New Zealand. Rdio, which is more like Spotify in that it offers on-demand streaming to users, has a significant international footprint and is operating in over 100 countries.
So, with all that in mind, Pandora has just announced it wants to buy Rdio's "key assets" for $75 million. The acquisition would include “technology and intellectual property” from Rdio, which simultaneously confirmed it'll file for bankruptcy to - presumably - shed its accumulated debt.
Also, as part of the acquisition, Pandora said it will shut down Rdio's existing service in all markets and plans to launch a new on-demand product based on Rdio's tech and talent. Keep in mind Rdio still has to be remain open to competitive offers while it files for bankruptcy.
The planned sale to Pandora, which is expected to close in the first quarter of 2016, will not be a done deal until that process is finalised.