mp3.com to be bought by Vivendi
05/21/2001 4:52:02 AM MDT Albuquerque, Nm
By Dustin D. Brand; Owner AMO
Everyone is going legit for online music, mp3.com is the latest.
Vivendi Universal will buy for $372 million or $5 a share, a 60% premium on Fridays stock close of $3.01; MP3.COM. This is a twist of irony because Vivendi has several lawsuits pending against mp3.com, and won a judgement earlier this year against mp3.com for more than $50 million.
These kinds of deals aren't anything new in the past few months, as RealNetworks, Microsoft, and even Sony who was in talks with Vivendi, build their online legal paid music subscription services. Vivendi said "the combined audience for MP3.com and for Vivendi Universal's GetMusic, Farmclub and Emusic initiatives would reach some 40 million registered users." This would give Vivendi the largest online music audience of any of the major music groups.
In the light of the strict law enforcement now in place against Shawn Fanning's illegal creation, it is more than obvious that the major software companies, and indeed the record labels are stearing clear of his now highly infamous illegal music swapping service.
MP3.COM had their fair share of trouble, and with several tens of million dollar lawsuits still pending, they've already paid out a few hundred million in court awarded damages.
(The press release stated that 120 MP3.com technologists will help Vivendi Universal get a handle on its digital content-delivery initiatives.)
There is no clear winner yet in online legal music distribution, but several things are certain. #1, the service must be legal, and #2, people want digital quality cd or better music if they're going to pay for it...
Related AMO Articles:
Shawn Fanning crys FOUL!
Shawn Fanning has injunction now.
Shawn Fanning taking moves.
The rise and fall of Shawn Fanning.