Yahoo Aquires Musicmatch

Yahoo has announced that it will acquire Musicmatch, a provider of music jukebox software and subscription services, for $160 million in cash. Founded in 1997, San Diego-based Musicmatch’s jukebox software. Its music subscription services which include both Internet radio and a download service count a combined 225,000 subscribers. Yahoo said the merger will increase the reach of its music-related services from 12.9 million to an estimated 23 million listeners. “This combination bolsters our strategy to capture the largest audience of consumers as they make the shift to digital music and supports Yahoo’s goal to give consumers the greatest choice, control and flexibility in how they interact with their music,” said Yahoo CEO Terry Semel. “This acquisition is one of several product innovations and new initiatives in which Yahoo will invest to build our music portfolio this year and in the future.” Yahoo also acquired Launch, a provider of music videos and song streaming, for $12 million in 2001. The company still faces stiff competition in the digital music market from current download retail leader Apple, and rival services from Microsoft, Sony, Wal-Mart and others