CNET ACQUIRES MP3.COM

MP3.com, which arguably jump-started the digital music craze when Michael Robertson launched the site in 1997 and sold it to Vivendi-Universal in 2001 for $372 million (see hitdailydouble.com story), has reportedly been acquired by CNET Networks, Inc. Word on the street was the site was available for between $700-800k. Earlier this month, VU unloaded another of its Internet properties, EMusic, to a private investment firm.

The site will go down on Tuesday, Dec. 2, and, following a transition period, CNET Networks, Inc. plans to introduce new and enhanced artist services.

A spokeswoman for the company told the Wall Street Journal that CNET is acquiring the domain name and brand. "MP3.comis a vanguard brand that is synonymous with digital music."

MP3.com's content administration tools will remain available until the site is redirected at that date. Following the removal of the MP3.com website, all content will be deleted from the servers and all previously submitted tapes, CD-ROMs and other media will be destroyed.

MP3.com stopped collecting monthly fees for Gold and Platinum Artist Service subscriptions as of Nov. 3. For any monthly subscription fees MP3.com received during the period beginning Oct. 13 and ending Nov. 2, MP3.com will be issuing a refund that will be prorated to reflect a termination of the subscription as of Nov. 2. For any previously paid annual Gold and Platinum subscription fees MP3.com has received during 2003, MP3.com will be issuing a refund that will be prorated to reflect a termination of the subscription as of Nov. 2. Any artists who subscribed to the Platinum or Gold Artist Service after Nov. 2, will receive a full refund of any fees paid.

MP3.com will perform a final artist accounting and check distribution on or around Dec. 1. Any artist account with a balance of at least $25 will qualify to receive a payment in the final artist accounting (reduced from the usual requirement of $50). Payment of CD royalties will be included in the final artist accounting.

Plans will be announced for the new version of the site in the near future.