MP3.com won�t have to worry about future lawsuits from the Universal Music Group because the record giant�s parent company Vivendi Universal has now agreed to buy the company for $372 million.
The MP3.com board of directors unanimously approved the sale of the company to Vivendi Universal at $5 per share. MP3.com shareholders will be given the choice of taking $5 cash for each share or receiving $5 in Vivendi Universal's American depository receipts. MP3.com�s stock was trading at $3.01 per share at the close of the Nasdaq on Friday but after news of the Vivendi Universal deal broke the stock climbed to $4.85 a share by the close of the market today (May 21). The MP3.com shares traded at a high of $22.50 last June.
Mp3.com will remain an independent company but Vivendi Universal plans to use the popular music site to their advantage. "Their engineering and digital expertise will be a tremendous advantage for Vivendi Universal, especially in the digital distribution of all Vivendi content and the creation of common technology platforms," said Vivendi chairman Jean-Marie Messier.
This acquisition may have a deep impact on how the major record companies distribute music online with Vivendi Universal taking the early lead. This may pressure other record companies to jump into the ring, or be left behind.
Vivendi Universal already has a stake in
other online music ventures including Duet- a joint venture between Vivendi
and Sony Music that will be marketed on Yahoo. GetMusic.com was another
joint venture for Vivendi Universal. However, last March Vivendi Universal
agreed to purchase the other half of the company from their partner BMG
Entertainment. Vivendi also owns Farmclub.com and purchased Emusic.com
last month for a little over $23 million.
Rock Reads: Pink Floyd: Behind the Music By Mike Evans
Nice Jazz Fest Set to Rock the French Riviera
Dave Koz & Friends at Sea Cruise, Part 4: The Cruise Wraps Up In Reykjavik
Dave Koz & Friends at Sea Cruise, Part 3: All Ashore! The Cruise Reaches Norway and Iceland
Caught In The Act: Cheap Trick Rocks Chicagoland On July 4th
Wolfgang Van Halen Shares Ironic Belief
Prince Sign O' The Times Coming To IMAX Theatres
New Book 'Pearl Jam Live!' Mirrors Concert Experience To Tell Band's Story
Bright Eyes Reveal '1st World Blues'
12th Annual Goosemas Announced
Iconic Cover Artist Ioannis Celebrated With The Southern Sunrise Puzzle
GWAR: Live From The Hellmouth Stream For Their 40th Anniversary
Metallica Scholars Initiative National Workforce Education Program Expands to 75 Schools