Thursday, December 12, 2013
Cumulus Takes a Significant Stake in Rdio
The strategic partnership will provide Cumulus with a financial interest in the larger digital music ecosystem and allows Rdio to launch free, ad-supported products in the United States while accelerating the activation of new users and subscribers.
Cumulus will obtain a significant equity stake in Pulser Media, Rdio’s parent company, in exchange for exclusive content, media and on-air promotional commitments over a fiveyear period. In addition, Rdiowill leverage the Cumulus sales infrastructure to monetize its upcoming ad-supported free products, including music on-demand, custom playlists andexclusive content curated by Cumulus.
Available in over 30 countries, Rdio is the digital music service founded by the co-creator of Skype. On Rdio, music fans discover, play and share more than 20 million songs and build a digital music collection that’s available to stream on the web, on mobile and offline. Rdio offers listeners an ever-growing catalog and an endless variety of passive listening options, including personalized radio stations. The New York Times has recently called Rdio its “go-to music app” for its “beautiful design and user interface,” while Mashable has lauded it as the “music discovery version of a candy store.”
“This partnership leverages our premier broadcast and content assets along with Rdio’s acclaimed digital audio platform -- enabling consumers to listen to whatever they want, whenever they want, however they want,” said Lew Dickey, CEO of Cumulus.
“We are thrilled to be partnering with Cumulus and their robust network of radio stations and premium content,” says Drew Larner, CEO of Rdio. “This monumental deal is the first time a digital and a broadcast platform have come together in this way and we’re eager to bring the Rdio experience to the greater Cumulus listening audience.”
RBC Capital Markets initiated and facilitated this transaction.
Posted 10:06:00 AM