Sony USA acquires Gracenote

April 23rd, 2008 at 12:00 am
 


Sony USA has agreed to acquire media identification company Gracenote. Known formerly as CD DataBase (CDDB), GraceNote’s MusicID leverages a database of over 6M CDs and 80M tracks. Its technology has been in development since 1995.

Gracenote will still operate separately from Sony and teir management will stay on board for the meantime.

PRESS RELEASE:

NEW YORK, April 22, 2008 – Sony Corporation of America (SCA) announced today that it has signed a merger agreement with Gracenote, Inc. Sony will pay approximately $260 million plus other contingent consideration.

“Gracenote is a global leader in technology and services for digital media identification, enrichment, and recommendation, and these capabilities will be essential to the next wave of innovation in content, services, and consumer electronics,” said Tim Schaaff, SCA Senior Vice President, Software. “Sony sees tremendous growth potential in developing Gracenote as a separately run business unit, and by broadly embracing Gracenote’s platforms, Sony expects to significantly enhance and accelerate its own digital content, service, and device initiatives.”

“We are very pleased to join Sony as its strategic vision is very much in line with our own,” said Craig Palmer, Gracenote CEO. “Having a closer connection with the content and digital services community will accelerate adoption of Gracenote technologies, and the relationship will also give us the resources necessary to rapidly expand development of next generation products for the industry.”

Gracenote’s existing business will continue to operate separately. As a wholly owned Sony subsidiary, Gracenote will continue to develop new technologies in existing as well as new areas of operation. The senior management team will remain with the company.

Sony and Gracenote anticipate that the transaction will close in late May, subject to certain regulatory and other approvals.