Muze Acquires Loudeye U.S.
Loudeye to Focus on Expanding Global Operations With Its OD2 Services
Loudeye Corporation announced today that Muze has acquired Loudeye’s U.S.-based services and operations in an asset purchase transaction for $11.0 million in cash. The transaction closed April 30, 2006. Muze assumed Loudeye’s web and mobile digital music commerce services, operating on Loudeye’s U.S.-based platform. The platform also has the capabilities to offer portable music subscription services to its customers. Live customers of the service are O2 Germany, ATT Wireless mMode MusicStore (now Cingular Wireless mMode Music) and BurnLounge. The acquisition by Muze also includes Loudeye’s encoding services, including for EMI Music customers, and music sound samples services, along with its hosting and internet radio services.
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. The success of the OD2 service has made Loudeye the #1 seller of Windows Media (WMA) formatted full track music downloads in Europe.
Muze has acquired Loudeye’s Seattle based digital media store services and online radio commerce solutions, which enable secure downloads of digital media content for online and mobile users. The acquisition includes the rights to a broad catalog from the four major labels, and many of the leading independent labels and aggregators. Muze clients now have access to digital music and radio, as well as fully-integrated or standalone e-commerce solutions. These services offer retailers and other entities a “branded” digital music experience, with rapid deployment and at a minimum of effort.
The acquisition also consolidates Muze’s U.S. and European sound sample libraries with Loudeye’s, creating the world’s largest label-sanctioned catalog in the world, augmented by the deepest, most comprehensive, and most accurate music database available today. This combination of leading-edge technology and world-class editorial content will enable Muze clients to greatly enhance their respective businesses through subscriptions or downloads of digital media, all in support of their specific business models.
With the transaction, Muze significantly expands its global presence, with the addition of a Seattle office, adding to its New York headquarters and offices in the U.K. Loudeye will remain a U.S.-based publicly traded company, with offices in Seattle, Bristol and London, U.K., Paris, France, Cologne, Germany and Milan, Italy.