Streaming music service Rdio is set to shut down shortly after filing for bankruptcy, with Pandora to acquire the company's "key assets" for $75 million.

The deal is set to give Pandora all of Rdio's technology and intellectual property, while the company will also be offering to hire "many" of Rdio's staff. However, as Pandora is not acquiring the entirety of Rdio, some employees will inevitably end up without a job, including their CEO who will not be joining Pandora's executive team.

Purchasing parts of Rdio makes perfect sense for Pandora, allowing the service to expand beyond just streaming radio. Although Pandora is the largest service of its kind by far, it has struggled to maintain user growth and turn a profit, especially when competing services like Spotify offer features that Pandora doesn't, such as on-demand music streaming.

By acquiring Rdio's key assets, Pandora has the ability to expand into the world of on-demand music streaming. In fact the company is planning to offer an "expanded Pandora listening experience" by late 2016, pending the ability to obtain the relevant licenses and deals from record labels.

As for Rdio, the company and brand will be shut down entirely, with the sale of key assets to Pandora expected to close in the first quarter of 2016. The auction of Rdio's other assets will be conducted by the United States Bankruptcy Court for the Northern District of California.