AfterDawn: News

Loudeye Corporation has stuck a deal with Muze to sell the company its U.S.-based Web and mobile digital music operations for a sum of $11m. Muze will now have control over Loudeye's mobile and web digital music commerce services, its encoding operations, music sound samples services and hosting and Internet radio services. The gold however could lie in inheriting rights to a catalog of content from four major music labels and some independent labels.

Loudeye said that its decision to sell its US operations won't affect its efforts globally. "We are focused on achieving significant growth in our digital media store services globally," says Loudeye President and CEO Mike Brochu. "The market for digital music downloads, including mobile, is expanding at a fast pace, and we are well positioned in key markets to capitalize on this growth."



This transaction is a further step in Loudeye's plan announced in February 2006 to focus on its key revenue generating customers, while substantially reducing Loudeye's cost structure. This transaction better positions Loudeye to capitalize on growth opportunities in rapidly evolving digital media markets, including mobile, and to accelerate innovation on Loudeye's OD2 service offering, which Loudeye offers globally.

Source:
Loudeye

Written by: James Delahunty @ 3 May 2006 16:08