The digital music backend provider MusicNet, the main competitor of OD2/Loudeye and the company who will provide the backend to HMV's new download platform, has been sold to a New York based private equity firm called Baker Capital. No word on the price paid for the firm, though investment types reckon it will be close to the $36 million RealNetworks paid for a company called Listen.com back in Aug 2003.
The company's new owners told reporters that MusicNet would now be "capitalised with the funds necessary to expand the scale of its operations, increase the breadth of its digital content offerings and launch its growing list of marquee global distribution partners." So now you know.
MusicNet began in 1999 as a joint venture between EMI, Bertlesmann, **Time
Warner** and Real Networks (these were the days when we all assumed the record labels and not Steve Jobs would lead the digital music revolution). The original plan was to launch an iTunes-esque consumer facing download platform, but as the IT players started to dominate, the venture quickly moved into providing back end services to consumer brands wanting to enter the download space.
No real word on what the change in ownership will mean for MusicNet, though day to day operations should continue unchanged for the time being, with Alan McGlade staying on as CEO.