Microsoft is reportedly in talks to buy San Francisco-based digital music streaming, subscription and discovery service company Rdio.
The Next Web has reported the rumour because, “those talks are likely actually taking place, and because an eventual deal would make sense for both parties”.
Speculations for the potential purchasse are based on the links between the two companies through Rdio’s founders Janus Friis and Niklas Zennstrom, who also started Skype – which was acquired by Microsoft for $8.5 billion in 2011.
Skype is an investor in Rdio through various connections which “provides a very interesting backdrop onto which we can frame what we are currently hearing”, says The Next Web.
Microsoft operates the Xbox entertainment brand, and is planning to introduce a new music streaming service called Xbox Music. Digital music streaming, distribution, download and discovery services are often acquisition targets for any consumer-facing company that offers both hardware and associated software and services.
It has also been rumored that Microsoft will offer video content under the Xbox Video brand, and that Rdio has a service called Vdio in the works.