Yahoo! struck a $12 million deal to acquire Launch Media, a popular online music content provider.
Yahoo! is making a a cash tender offer to acquire all of Launch's outstanding shares for approximately $12 million. The acquisition is expected to close in the third quarter, subject to certain customary closing conditions, the companies said in unveiling the deal on Thursday.
Yahoo! has been gradually expanding from a search engine to multimedia purveyor and the company sees Launch's services complementing what Yahoo! already offers users on its broadcast and radio "channels".
Separately, Launch revealed that it has settled the copyright infringement suit brought by Universal Music and other major record labels in connection with Launch's Internet radio service, Launchcast. Launch has entered into a non-exclusive license for use of UMG-controlled recordings in Launchcast, and will pay UMG an undisclosed amount for past recordings used. - Richard Tedesco