French multimedia giant Vivendi Universal said today it will buy online music firm MP3.com for $372 million that will help it strengthen its online music distribution and subscription services.
Vivendi said MP3.com's board has unanimously approved the deal, and that holders of more than 50 per cent of MP3.com's outstanding shares will vote for the deal.
The transaction has been structured as a reorganization that will be tax free to MP3.com shareholders to the extent they receive Vivendi Universal shares, the company said in a release.
Vivendi distribution capabilities will be enhanced by the MP3.com acquisition.The total aggregate audience for MP3.com, GetMusic, FarmClub and EMusic represents close to 40 million registered users, with approximately 120 million monthly page views.