Milpitas, Calif. – SanDisk (NASD: SNDK), a maker of MP3 players and flash storage media, announced on Tuesday that it has acquired MusicGremlin, the maker of a Wi-Fi-enabled digital audio player. Financial terms of the deal were not disclosed. Founded in 2003, New York-based MusicGremlin’s eponymous device was one of the first to allow music direct music downloads over a Wi-Fi connection without the need of a computer.

The players also allow direct device-to-device sharing, between subscribers to MusicGremlin’s $15-per-month subscription service, and sharing between MusicGremlin owners over a Wi-Fi connection.

"MusicGremlin’s digital distribution platform and capabilities will provide SanDisk with adaptive and innovative technology that will play a key role in the development of future Sansa products for consumers," said Daniel Schreiber, general manager and SVP for SanDisk’s Sansa audio/video business unit.

SanDisk’s Sansa MP3 player product line accounted for 11% of the market in the first quarter of 2008 – second to Apple’s 71% — but better than fellow manufacturers Microsoft (4%) and Creative (2%), according to NPD Group.

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http://www.sandisk.com

http://www.musicgremlin.com