RealNetworks acquires

22 Apr 2003

Online music software specialist RealNetworks has decided to buy internet music service in a cash and stock deal valued at US$36m.

The acquisition of will give RealNetworks ownership of Listen’s Rhapsody music service, which holds licences from major record companies and which allows consumers to legally burn songs on to CDs.

The acquisition comes on the heels of RealNetworks’ investment in last February.

RealNetworks said that Rhapsody will be used to build the music offerings of Real’s RealOne news, sports and entertainment subscription service.

Under the terms of the deal, RealNetworks will pay US$17.3m in cash and 4.1 million shares in common stock, valuing the deal at US$36m.

By John Kennedy