×
You will be redirected back to your article in seconds

Sony Music Files Lawsuit Against Rdio Executives Over Pandora Deal: Report

Sony Music has filed a lawsuit against senior executives of now-defunct online music service Rdio, alleging that they defrauded the record label of millions of dollars in licensing fees, according to a report by the Hollywood Reporter. The lawsuit alleges that Rdio executives misrepresented their plans for the struggling streaming service in negotiations with Sony, getting an extension on licensing payments while they also were in the process of selling the company.

Pandora announced the acquisition of Rdio’s assets for $75 million last November. As part of that acquisition, Rdio filed for bankruptcy and laid off all of its staff, many of whom were subsequently hired by Pandora to work on the company’s upcoming on-demand streaming service.

One of the reasons for the bankruptcy was that Rdio owed creditors millions of dollars. Some of Rdio’s unsecured creditors included technology companies like Shazam and Roku as well as music industry heavyweights like Sony Music and Warner Music Group. Bankruptcy filings at the time indicated that Rdio owed Sony Music alone $2.4 million, but the lawsuit now alleges that the record label was actually owed $5.5 million total.

Rdio executives allegedly told Sony Music that the company was in the process of raising new funding, asking the record label for a little extra time to pay owed royalties. However, it apparently didn’t disclose its negotiations with Pandora, which included a payout for former Rdio CEO Anthony Bay as well as two other senior executives.

Popular on Variety

Sony Music now wants to force Bay to give back his cut to pay out the label, calling the idea that the former CEO would benefit from the deal “against equity and good conscience.”

Variety has reached out to both Sony Music and Bay; we’ll update this post once new information becomes available.

More Digital

  • Green Day Beat Saber music pack

    Beat Saber Gets Green Day Music Pack, 360-Degree Levels

    Coinciding with Green Day’s performance at the Game Awards, Facebook announced late Thursday that the popular virtual reality game Beat Saber is getting a Green Day music pack. The 6-song pack is slated to go live at midnight, and players will simultaneously get access to Beat Saber’s long-awaited 360-degree gameplay. The Green Day music pack [...]

  • Ghost of Tsushima Trailer

    'Ghost of Tsushima' New Trailer Drops at The Game Awards

    A new full trailer for developer Sucker Punch’s “Ghost of Tsushima” is finally here. The latest substantial footage of the samurai game dropped at The Game Awards Thursday night, marking the first real look at the PS4 exclusive since Sony released a short teaser during its State of Play earlier this week. “Ghost of Tsushima” [...]

  • Ultimate Rivals The Rink - Apple

    Apple Arcade Launches NHL Game That Lets You Put Athletes From Other Sports on the Ice

    Now you can see NBA superstar LeBron James facing off against NHL great Wayne Gretzky in a fast-paced hockey game. In an innovative fantasy mashup for sports gaming fans, Apple Arcade is launching “Ultimate Rivals: The Rink,” a hockey game that lets you pit NHL players against athletes from other sports. The game is available [...]

  • Xbox Series X: Next-Gen Console Revealed

    Microsoft Reveals Next-Gen Console, Xbox Series X, at The Game Awards

    The next-generation Xbox console is officially called the Xbox Series X, and will be released over next year’s holiday season, Microsoft revealed during Thursday night’s The Game Awards. Head of Xbox Phil Spencer took the stage at Los Angeles’ Microsoft Theater to make the big reveal about the project previously known as Project Scarlett, and [...]

  • The Game Awards

    How to Watch the 2019 Game Awards

    The Game Awards will be taking place on Thursday night and, fittingly, there are plenty of ways to stream the event online. The whole show will be streaming live starting at 5:30 p.m. PT/8:30 p.m. ET from Los Angeles’ Microsoft Theater on The Game Awards’ YouTube, Facebook, Twitter and Twitch pages. Additionally, for the first [...]

  • Neon-Hum-Jonathan-Hirsch

    Sony Music Invests in Podcast Production Firm Neon Hum

    In its latest move into the podcast biz, Sony Music Entertainment announced a strategic investment in podcast production house Neon Hum. Founded by podcast producer Jonathan Hirsch (pictured above), L.A.-based Neon Hum has helped create multiple podcast hits including MSNBC’s “Bag Man” with Rachel Maddow, Dateline NBC’s “The Thing About Pam,” Wondery’s “Room 20,” Crooked [...]

  • Hulu Hopes to Make Ads Part

    Hulu Hopes to Make Ads Part of Your Binge Session

    If you just can’t keep yourself from watching another episode of “The Handmaid’s Tale” or “PEN15,” then Hulu has an ad for you. The streaming-video hub is starting a trial run of new commercials aimed specifically at binge-watchers, which the company defines as subscribers who watch three or more episodes of the same series consecutively. [...]

More From Our Brands

Access exclusive content