RNWK-MSFT: Almost Like A Buyout

Now you know why Microsoft broke off talks with music labels: it has almost bought out Rhapsody.

If all the elements of the deal play out as planned, or as promised, it is almost a buyout of RealNetworks music and games services…on the other hand, MSN has given up on its own.

It has solved the subscription services for MSN. It also gives MSN Messenger a kickstart. It gives MSFT DRM a big push.

RealPlayer still continues as a standalone, but for all intents and purposes, has been included in the MSFT family. It gives Rhapsody the undisputed #1 position in music subscription service, for sure.

All in all, a very smart deal for both companies, notwithstading the snicker value involved…more later…

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