Feeds

Yahoo! snaps up Musicmatch

$160m cash purchase to propel digital music market entry

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Yahoo! is to buy digital music company Musicmatch for $160m in cash, the two companies said today, to springboard the portal's own entry into the emerging online music business.

Musicmatch launched in the late 1990s as a subscription service, but opened an a la carte download store last year largely in response to Apple's iTunes Music Store.

Since then it has partnered with Dell to power the PC maker's own digital music service, and is said to have almost reached a similar agreement with HP until the latter made a last-minute switch to Apple. Sony has a long relationship with Musicmatch, bundling the latter's jukebox software with its optical drives, and more recently with the HMP-A1 hard drive-based MP3 player it offers in Japan. Many other MP3 player, optical drive and other computer component makers bundle Musicmatch Jukebox.

Whether these relationships continue following the Yahoo! takeover remain to be seen. Certainly, the acquisition is not expected to be completed until Q4.

While Musicmatch has got its software in front of tens of millions of PC users - in part through a strong retail presence, but mostly through its bundling deals - its music store hasn't won the mindshare that rivals Napster and iTunes have achieved. With Yahoo!'s branding behind it, that may change.

For its part, Yahoo! said the deal "bolsters our strategy to capture the largest audience of consumers as they make the shift to digital music" and to become "a major player in digital music".

"Our goal is to give consumers the music they want, how they want it, anywhere they want it," said Yahoo!'s music chief, David Goldberg. So presumably we can look forward to Mac and Linux versions, eh, David? No, thought not.

The deal also increases Yahoo! scope to serve ads, and potentially provides it with a bigger audience to show those ads to. ®

Related stories

Yahoo! calls for uniform EU music licensing
MusicMatch issues official support curse for iPod users
Musicmatch iTunes-style service goes live
MusicMatch to offer subscription free downloads
Sony, MusicMatch form CD burning alliance
Circuit City buys BestBuy music download supplier

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.