Loudeye

Itís all go in Europeís digital music space. Europeís digital music stalwart OD2 has been acquired by US based Loudeye. Though some might have expected a rather larger suitor*, the deal does have enough synergies pouring out of it to keep even the
most demanding management consultant happy. The distinct geographical footprints of both companies means that they will have trans-Atlantic reach but with little client overlap.

Some may view the acquisition as a death rattle, but OD2ís business model is as relevant, if not more, in the post-iTunes / Napster world. OD2ís back end infrastructure model provides the nuts and bolts for companies who have donít have either the will or the means to develop a digital music store or service themselves. With the advent of Europeís new market entrants there will be even more demand from ISPs and retailers who want to compete in the digital space but who want to own the consumer relationship and maintain complete brand control.

*some of the larger potential suitors would have had conflicting interests with much of OD2ís client base

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