Deal closed for $11 million in cash.
Loudeye, which has been openly searching for a buyer since February, has sold its U.S. operations to digital entertainment firm Muze for $11 million in cash.
The Seattle-based company will continue to run the UK-based OD2 service, which provides the backend technology that powers multiple mobile and online music services throughout Europe. It will remain headquartered in the U.S.
According to the agreement, Muze—based in New York—will take over all of Loudeye’s online and mobile music digital delivery services. Customers include the Cingular Wireless mMode music service, BurnLounge and others. The deal also includes encoding services for EMI Music customers, as well as Internet radio hosting services.
The two companies also have consolidated their U.S. and European sound sample libraries.