Internet heavyweight Yahoo has just announced that it will be acquiring Musicmatch Inc. for $160 million in cash. Set to close in Q4 of this year, the deal will see Musicmatch Inc. become a direct subsidiary of the expanding California based company.
Plans include integrating Musicmatch' existing on-line radio network and music store into the popular "Yahoo Launch" service. Yahoo CEO Dennis Mudd commented that "...combining assets with Launch, we believe that Musicmatch will have an even stronger position to take advantage of the rapidly growing digital music segment."
Musicmatch currently sells around 1.5 million digital songs per month through its online music portal. Yahoo will undoubtedly make a push to bring that number up, trying to lure users away from competing portals like iTunes and Rhapsody.
News source: Bloomberg News