Rumor Mill: Microsoft in talks to buy Rdio

This just hit the web. The rumor is going about that Microsoft is in talks to buy music subscription service Rdio. Rdio if you don't know by now, is a service similar to Spotify and such services and already has apps for PC, Mac, Android, iOS and even our Windows Phone (An ok app). At this time Rdio was in the process of creating a video equivalent to Rdio called...well.... Vdio. What's funny about this though, is that Microsoft through its purchase of Skype is super-connected to the Rdio team. Here TNW sums it up:

Know that Rdio was cooked up by Janus Friis and Niklas Zennstrom, the two Scandinavian entrepreneurs who famously started the likes of KaZaa, Joost, and of course, Skype. In case you've been living under a rock: Skype was acquired by Microsoft for $8.5 billion in 2011.

This made for an - ongoing - awkward situation, as Skype is also an investor in Rdio. Another investor in Rdio is Atomico, the venture capital firm founded by Skype co-founder Niklas Zennstrom. And another investor in Rdio is Mangrove Capital Partners, who was one of the early backers of Skype.

Still with us? Because it doesn't end there.

Another Rdio co-founder, Carter Adamson, was previously Head of Product at Skype. The music startup's Product VP, Malthe Sigurdsson, helped create Skype's brand and was formerly its Creative Director. Its VP Strategic & International Partnerships, Bagby, helped construct the commercial side of Skype.

Crazy stuff aye? As a commenter on the TNW article (Jeff Kibuule) summed it up "Xbox Rdio and Xbox Vdio. Perfect."

Additional Reads:

1. Rdio vs Spotify

2. Rdio vs. Spotify 2