GoodNoise Acquires Two Companies
Page 1 of 1
Downloadable music company GoodNoise Corp. in Palo Alto, CA has signed agreements to acquire privately held Nordic Entertainment Worldwide in Napa, CA and Creative Fulfillment Inc. (Emusic.com) in Santa Monica.
Nordic is the leading provider of downloadable music on the Internet, GoodNoise said. Nordic was the first Web site to sell digitally downloadable music and maintains the largest catalog of downloadable music for sale on the Internet, featuring more than 1,000 artists and over 6,000 songs.
Creative Fulfillment is an entertainment and Internet marketing company that operates the Emusic site. Emusic is a music retail and information site that offers more than 135,000 CD titles and 30,000 video titles as well as downloadable music through a partnership with Nordic Entertainment. Nordic and Emusic also maintain a network of Internet radio stations.
GoodNoise said the acquisitions (financial specifics were not disclosed) position it as "the clear leader" in the emerging market for downloadable music.
Under the terms of the transactions, which include stock and cash, GoodNoise will issue up to 2.1 million shares of GoodNoise stock, subject to certain closing conditions. GoodNoise expects both acquisitions to close in approximately 90 days. GoodNoise closed at $7.62 yesterday.
"The market for downloadable recordings, while in its infancy, is poised for tremendous growth over the next three to five years," said Bob Kohn, chairman of GoodNoise. Nordic Entertainment founder and CEO Kent Kiefer, and Creative Fulfillment founder and CEO Mark Chasan, will join the GoodNoise executive management team.