Sony buys Gracenote for USD260m

Sony is acquiring digital music technology firm Gracenote for USD260m, and possibly more depending on earnings. California-based Gracenote will become a wholly-owned Sony subsidiary and will continue to operate independently, while retaining its senior management. The deal, expected to close in late May, follows Macrovision’s acquisition last year of Gracenote rival AMG.

Founded in 1995 as CDDB, Gracenote offers the technology powering digital music services including Apple’s iTunes, Winamp and Yahoo! Music Jukebox, as well as portable music devices and MP3 players. The company, which is expected to post revenues of USD40m this year, is also developing a DVD information database that will help identify copyrighted material within videos, says the Associated Press.

Other applications include a music recognition service, which detects and identifies songs being played and provides related info, and a music lyrics service offering licensed lyrics from major labels and other publishers.

Gracenote has raised five rounds of funding since its launch, according to paidContent. Investors include Sequoia Capital and Bessemer Venture Partners.

Published by Reinout te Brake

Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry. Check out his games podcast;

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