Personalized radio service Pandora can proceed with its $75 acquisition of failed Spotify competitor Rdio: A bankruptcy judge approved Pandora’s plan to acquire key assets of Rdio this week, according to a Wall Street Journal report. Pandora will be using Rdio’s assets, as well as the many of Rdio’s staffers, to build its own music subscription service.
Pandora announced its intend to acquire Rdio in November. As a condition of the sale, Rdio had to file for bankruptcy to rid itself of debt and start an official auction process for its assets. Last week, Rdio cancelled the auction after it didn’t receive any competing bids.
Rdio had long been singlehandedly bankrolled by Skype co-founder Janus Friis, who invested more than $200 million in the service. However, the company failed to show significant growth, and had less than 200,000 paying subscribers when it filed for bankruptcy. Rdio was losing about $2 million a month, prompting Friis to pull the plug.
Rdio continued to operate through the sale process, but eventually shut down Tuesday. Pandora is expected to hire about 100 Rdio employees, and has plans to launch its subscription service before the end of 2016.