As expected, Europe’s biggest online music provider OD2, founded by Peter Gabriel (Gabriel and OD2 CEO Charles Grimsdale, in the picture on the right, speaking at the Midem Music Festival in Cannes earlier this year, which I attended) is being acquired, but the acquirer is a big surprise: Seattle-based digital media and music tech provider Loudeye, in a deal valued at least $38.6 million, reports WSJ.
Executives from both companies said their deal was prompted in large part by a growing interest from potential partners in introducing music services that aren’t limited to the U.S. and Europe. “Virtually every company we talk to wants to deploy a global strategy,” says Jeff Cavins, Loudeye’s CEO, in this story.
Under the terms of the deal, Loudeye will pay OD2 shareholders $20.7 million, including $18.4 million in stock and $2.3 million in cash. Loudeye agreed to pay an additional $17.9 million in cash or stock over the next 18 months, for a total of $38.6 million in guaranteed payments.
OD2 powers the music sites for MSN in UK, Coke Music, Tiscali, HMV and others. Microsoft, on the other hand, has an already existing tie-up with Loudeye in U.S. It is an incestuous circle of connections…
Related:
– OD2 Sale Announcement Today?
– OD2, Microsoft Team Up on Windows Media Jukebox
– OD2 Launches New Jukebox
– Loudeye’s Revenues Decrease On Webcasting Decline
– Infrastructure Company Becomes Digital Media Partner
– Loudeye Acquires Overpeer
– Loudeye Completes $20 Million Equity Financing
– AT&T Wireless to offer music service (With Loudeye)
– Loudeye, Microsoft team on music store
– Music market winks at Loudeye
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