Rumour: Microsoft in talks to buy Rdio

Rdio-Logo-GradientTNW reports that unnamed European sources are claiming Microsoft is working on a deal to buy Rdio, the cross-platform music streaming service based in San Francisco.

The streaming service, which has clients for Windows, MacOS,  iOS, Android, BlackBerry and Windows Phone and which is available in US, Canada, UK, France, Germany, Brazil, Australia, Spain, Portugal, Denmark, Finland, Sweden, Norway and New Zealand, was founded by Janus Friis and Niklas Zennstrom, who also happen to have started Skype, acquired by Microsoft for $8.5 billion in 2011.

The service is ad-supported, which would be a good fit for recent rumours of an Xbox branded ad-supported streaming music service.

Rdio CEO Drew Larner said here “is nothing to talk about” and that he will not “comment on rumors”.

Read more at TNW here.

  • Kristijan Sašilo

    Wow. :) This year (and the one before) is the year of some big-ass acquisitions! If only the service (Xbox Music, Rdio, whatever) expanded globally, beyond those countries listed! :)

  • Zicoz

    Really don’t see the point of buying Rio when they’re launching their own service

    • Smity Smiter

      Buying so that they don’t have competition, also add all the stuff rdio has to their own collection.

  • Rikkirik Contrera

    One strategy to get a big foothold in the different markets (music, video, apps, news etc) which are tightly connected to smartphones, tablets and PC’s from different rivals (Apple, Google etc) is to acquire their content partners. You might not beat them at this moment in smartphone sales, but controlling their content gives you an edge. Microsoft also puts it’s own products (Skydrive, Office 365, Skype) etc on rival products like the Iphone and Android phones. If Microsoft controls their content, it has not only power, but a great revenue stream, while expanding it’s own content worldwide.