French media giant Vivendi Universal has struck a deal to buy
MP3.com, just eight months after defeating the US-based internet
music service in a copyright lawsuit, the only one of five major
record labels to refuse to settle with MP3.com before the
conclusion of the case. At the time, MP3.com agreed to pay Vivendi
damages of $53.4 million.
The acquisition is expected to strongly reinforce Vivendi's
digital efforts in the strategic areas of on-line music,
subscriptions, branding, technology and all its content. It already
owns Universal Music Group and Universal Studios.
The acquisition also sees another high-profile music dot.com
lose its independence. Napster previously struck a similar deal
with Germany’s Bertelsmann.
MP3.com, which claims to have 40 million users, will continue to
feature content from all major record labels and from independent
artists. Vivendi will also use MP3.com to provide the technology
for Duet, Vivendi’s joint venture with Sony Music to create an
on-line digital music subscription service. Duet is expected to
launch this summer.
