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From the News Desk
Wednesday, 30. August 2006
Nokia to Buy Music Distributor for USD 60 mln
Nokia has agreed to acquire digital music distributor Loudeye Corp. for USD 60 million, to extend its presence in the budding market. Under the terms of the agreement, Loudeye stockholders will receive USD 4.50 per share in cash for each share of Loudeye common stock.
Nokia said by acquiring Loudeye, it can offer consumers a comprehensive mobile music experience, including devices, applications and the ability to purchase digital music.
"Music is a key experience for Nokia and Nokia Nseries multimedia computers and we want to be able to offer the best fully integrated mobile music experience to our customers. Loudeye brings a number of key assets to Nokia, including a great team of people, a substantial content catalogue and a robust service platform that will help us to achieve this objective," said Anssi Vanjoki, executive vice president and general manager, Multimedia, Nokia.
Loudeye operates 60 live services in over 20 countries and multiple languages across Europe and South Africa, Australia and New Zealand. Loudeye aggregates rights and content from all the major labels and hundreds of independents and currently offers licensed catalog and complete media for over 1.6 million tracks.
The current unique selling point for mobile devices is music and handset drivers are targeting digital music to sell more expensive new phones.
Since the Chief Executive Olli-Pekka Kallasvuo took over in June has embarked on a series of acquisitions. It has agreed to spin off its mobile networks infrastructure unit and dropped a planned phone making venture with SANYO. Kallasvuo has said Nokia is set to strengthen its multimedia and enterprise units through acquisitions.
The transaction is expected to be completed in the fourth quarter of 2006.
Nokia said by acquiring Loudeye, it can offer consumers a comprehensive mobile music experience, including devices, applications and the ability to purchase digital music.
"Music is a key experience for Nokia and Nokia Nseries multimedia computers and we want to be able to offer the best fully integrated mobile music experience to our customers. Loudeye brings a number of key assets to Nokia, including a great team of people, a substantial content catalogue and a robust service platform that will help us to achieve this objective," said Anssi Vanjoki, executive vice president and general manager, Multimedia, Nokia.
Loudeye operates 60 live services in over 20 countries and multiple languages across Europe and South Africa, Australia and New Zealand. Loudeye aggregates rights and content from all the major labels and hundreds of independents and currently offers licensed catalog and complete media for over 1.6 million tracks.
The current unique selling point for mobile devices is music and handset drivers are targeting digital music to sell more expensive new phones.
Since the Chief Executive Olli-Pekka Kallasvuo took over in June has embarked on a series of acquisitions. It has agreed to spin off its mobile networks infrastructure unit and dropped a planned phone making venture with SANYO. Kallasvuo has said Nokia is set to strengthen its multimedia and enterprise units through acquisitions.
The transaction is expected to be completed in the fourth quarter of 2006.
