Nokia preps for iTunes-like service
updated 11:15 am EDT, Tue August 8, 2006
Nokia to buy Loudeye
Nokia is planning to purchase Loudeye -- a digital music distributor -- for $60 million in a move that would bring Nokia closer to developing its own music download service to compete with Apple's iTunes Music Store, according to Macworld UK. "Music is a key experience for Nokia and Nokia Nseries multimedia computers. People should be able to access all the music they want, anywhere, anytime and at a reasonable cost," said Anssi Vanjoki, European vice president and general manager of multimedia at Nokia. Loudeye stockholders will receive $4.50 per share in cash for each share of Loudeye common stock under the agreement terms, which is expected to complete by the end of 2006.
Loudeye offers a Windows-only service that supplies a catalog of 1.6 million tracks for 60 music services in 20 countries. Nokia recently revealed that its April-June quarter saw 15 million music-enabled mobile phone sales.
"With this acquisition, we aim to deliver that vision and a comprehensive music experience to Nokia device owners during 2007," Vanjoki said.
