Seattle-based Loudeye said today that New York-based Muze is acquiring its U.S. operations in an asset purchase worth $11 million in cash.
According to a release this morning, the transaction closed Sunday.
Muze will assume Loudeye’s Web and mobile digital music commerce services operating on Loudeye’s U.S.-based platform. The platform also can offer portable music subscription services to its customers. Customers using the service include O2 Germany, AT&T Wireless (now Cingular Wireless’ mMode Music) and BurnLounge.
The acquisition by Muze also includes Loudeye’s encoding services, which includes EMI Music customers and music sound samples services, along with its hosting and Internet radio services.
“This transaction is a continuation of our restructuring efforts to streamline operations, align technology platforms and significantly reduce our cost structure. The cash infusion from the deal also strengthens our balance sheet,” said Mike Brochu, Loudeye’s president and chief executive.
More information will be provide during the company’s first-quarter 2006 operating results, which will come out May 9.
The asset acquisition follows a stream of bad news for the company, which included auditors questioning whether it could continue as a going concern and an announcement that a deal to create a custom digital music service for a North American retailer had fallen apart.