Sony snaps up Gracenote for $260 million

Sony has announced they have purchased digital media information powerhouse, Gracenote. For those unfamiliar with Gracenote, they are behind the CDDB, which makes it simple and easy to get track listings when ripping your CD collection. The deal involves some $260 million being changed hands, along with some other contingencies being sent Gracenote’s way.

Sony plans to operate Gracenote as a separate business unit, and both companies seem to be happy with the deal. According to Tim Schaaf, Vice President of Sony Computer America;

“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,”

Barring any legal difficulties, the deal will close by the end of May. Aside from becoming a property owned by Sony, Gracenote will “continue to develop new technologies in existing as well as new areas of operation.” To me it sounds like a sweet deal, Gracenote continues to operate as they were and still becomes $260 million richer.

Read [StreetInsider]