Yahoo Pumps Up the Volume with MusicMatch Acquisition
Yahoo and Musicmatch, Inc. today announced they have signed a definitive agreement under which Yahoo will acquire Musicmatch for a purchase price of approximately $160 million in cash. The combination will substantially increase Yahoo’s music reach from 12.9 million to an estimated 23 million listeners . This extensive reach within an active and engaged music audience will make Yahoo! even more compelling for advertisers and record labels.
“Yahoo is committed to being a major player in digital music,” said Terry Semel, chairman and chief executive officer, Yahoo! Inc. “This combination bolsters our strategy to capture the largest audience of consumers as they make the shift to digital music and supports Yahoo’s goal to give consumers the greatest choice, control and flexibility in how they interact with their music. This acquisition is one of several product innovations and new initiatives in which Yahoo will invest to build our music portfolio this year and in the future.”
Digital music sales are expected to grow rapidly in the near future, particularly with the increasing availability of broadband access. Music subscription sales are expected to grow from $113 million this year to $890 million in 2009, while digital downloads are anticipated to reach $803 million in 2009, compared to $158 million for 2004
Yahoo is brining on an entire hoopla of music features to their network in this latest aquisition. MusicMatch’s assetts include Musicmatch Jukebox software, which allows consumers to play, burn, download, discover, and organize an entire music collection; the online Musicmatch Radio network, which offers free and premium streaming access to more than 900,000 songs and more than 200 pre-programmed stations; and the Musicmatch Music Store a la carte song download service, which offers access to more than 700,000 tracks. Most recently, the company introduced the Musicmatch On Demand streaming music subscription service, providing unlimited access to more than 700,000 songs from any computer as well as legal music sharing through its innovative “Send to a Friend” feature.