Nokia makes content push by acquiring Loudeye

Nokia, the world's largest handset maker, will acquire Loudeye, a provider of digital media distribution services, for $60 million.

Nokia the world's largest handset maker, has agreed to acquire Loudeye, a provider of digital media distribution services, for US$60 million, the two companies announced Tuesday.

The acquisition marks a deeper thrust by Nokia to offer not only digital devices but also applications and a content delivery service.

Loudeye, with headquarters in Washington, focuses on digital media delivery platforms for businesses wanting to offer songs and content online. The company also secures the rights to the content from record labels.

Loudeye counts 1.6 million tracks in its catalog, a figure Nokia cited as "substantial." Loudeye said it runs 60 download services in 20 countries in Europe and South Africa, Australia and New Zealand. Major clients include MTV Networks, a division of Viacom International.

Loudeye also works with ISPs (Internet service providers) and mobile operators on value-added services and consumer electronic manufacturers on media services to complement their hardware, it said.

By 2007, Nokia said it will offer a "comprehensive" music service but did not offer more details. The company said it sold more than 15 million devices capable of playing digital music files in its second quarter.

Loudeye shareholders will receive US$4.50 per share of common stock. The acquisition is expected to be completed by the end of the year, the companies said.

For its first quarter ending March 31, Loudeye reported a net loss of US$4.6 million on revenue of US$8.4 million.

Loudeye will report financial results for its second quarter on Wednesday.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Cate Bacon

Aruba Instant On AP11D

The strength of the Aruba Instant On AP11D is that the design and feature set support the modern, flexible, and mobile way of working.

Dr Prabigya Shiwakoti

Aruba Instant On AP11D

Aruba backs the AP11D up with a two-year warranty and 24/7 phone support.

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?