Nokia buys Seattle music distributor Loudeye

Published 9:00 pm Tuesday, August 8, 2006

HELSINKI, Finland – Nokia Corp. said Tuesday it has agreed to buy Seattle-based digital music distributor Loudeye Corp. for about $60 million as the world’s No. 1 cell phone maker seeks to grab a larger share of the growing digital mobile music market.

Under the deal, Nokia will pay $4.50 for each share of Loudeye, a provider of digital music platforms and digital media distribution services.

“By acquiring Loudeye, Nokia can offer consumers a comprehensive mobile music experience, including devices, applications and the ability to purchase digital music,” the Finnish firm said.

Loudeye shares rose $2.56, or 145 percent, to close at $4.33 on the Nasdaq Stock Market. Nokia’s U.S. shares fell 10 cents, or 0.5 percent, to finish at $19.46 on the New York Stock Exchange.