In a bid to compete with Apple Computer and Microsoft in the online music services market, online giant Yahoo! announced yesterday that it will purchase Musicmatch for $160 million. Musicmatch makes a popular media player for Windows and operates two music-related online services--a subscription-based online radio service that has 225,000 users and an online music store that offers more than 700,000 tracks for sale.
"Yahoo! is committed to being a major player in digital music," Yahoo! Chairman and CEO Terry Semel said. "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."
Yahoo! says that the acquisition will help improve its music reach from 12.9 million users to an estimated 23 million users, making the company an even more impressive partner for advertisers and record companies. Previously, Yahoo! marketed a music destination called LAUNCH, which offered radio services.