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US retail chain Circuit City is to buy online music retailer MusicNow.

Terms of the deal were not disclosed, but the two companies said they expect the acquisition to be completed by the end of this month. Circuit City said it will not have a material impact on its FY2005 results.

MusicNow will continue to operate under that name and provide music services to third parties, such as BestBuy and SBC Yahoo. It will also now fuel Circuit City's own download offering, provided via the Circuit City web site and from within its 600-odd North American stores.

MusicNow was founded in April 1999 under the name FullAudio. It currently offers both Apple iTunes Music Store-style 99c a-la-carte downloads as well as the subscription packages it started out with. ®

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