[Update] Microsoft Reportedly Pursues Rdio, Plans Music Service

Rumor has it that Microsoft is currently interested in buying Rdio, a music streaming and audio service that currently operates a database of 18 million songs.

The Next Web writes that Microsoft and Rdio are already talking on a possible transaction, but Rdio CEO Drew Larner refused to comment on the matter.

On the other hand, the Redmond-based software firm may need a service such as Rdio for its future Xbox Music streaming service, but again, information on this particular subject is still limited.

Sources familiar with the matter are claiming that Microsoft may launch the Xbox Music service on October 26, together with the brand new Windows 8 operating system.

We’ve contacted Microsoft for an official statement on this subject, so we’ll get back to you as soon as we get the comments.

Update: Microsoft has told us that it doesn't want to comment on the matter at this point, but it confirmed that more information will be released at a later time.

"We're not commenting on speculation around Xbox Music. What we can say is we're excited for Xbox Music as our definitive music service. It'll bring great new ways to enjoy, share and discover new music on all your Windows 8 devices, Xbox 360 console and Windows Phone 8. We'll let you know when we have more information to share," Microsoft told us.