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MusicNet Joint Venture

Record Labels, RealNetworks Sell MusicNet Joint Venture to Baker Capital

Authored by Mark Hefflinger on April 13, 2005 - 10:00am.
New York -- MusicNet, the digital music distribution joint venture launched in 2001 by RealNetworks and the major record labels, has been sold to New York-based investment group Baker Capital. Financial terms of the transaction were not disclosed. Baker Capital's investment portfolio is focused mainly on digital communications firms, and also includes Wine.com, Action Engine and Broadview Networks. MusicNet provides a library of 1.3 million tracks, and digital music services to distribution partners AOL, Virgin Digital, HMV and Trans World Entertainment. "In the early stages of building the business, we greatly benefited from our strategic alliances with key players in the music industry," said MusicNet CEO Alan McGlade. "Today marks a new chapter in the history of MusicNet, as our agreement with Baker Capital greatly enhances our ability to grow, both domestically and internationally." Baker Capital said the deal will provide MusicNet with the funds necessary to expand the scale of its operations and increase its music library.
tags: RealNetworks | Baker Capital | Record Labels | MusicNet Joint Venture |