Yahoo to Acquire Launch Media

Posted on June 29, 2001

Yahoo! Inc. announced it has agreed to acquire Launch Media, Inc., a music media company. The acquisition is expected to be completed in the third quarter of 2001. Launch's operations will continue to be based in Santa Monica following the completion of the acquisition. Launch co-founders, CEO David Goldberg and President Bob Roback, will remain with Launch following the acquisition.

Launch's services will complement Yahoo!'s current entertainment offerings, including Yahoo! Music, Yahoo! Broadcast, and Yahoo! Radio, by giving Yahoo! users access to Launch's collection of on-demand music videos, exclusive artist features, and music news. In addition, consumers will have the ability to experience streaming music stations with audio and video content tailored to their entertainment tastes.

``As entertainment becomes an increasingly important focus for Yahoo!, we are committed to delivering the best online entertainment experience available on the Web to our 192 million consumers. The acquisition of Launch is evidence of this commitment,'' said Ellen Siminoff, Yahoo!'s senior vice president of entertainment and small business. ``Launch Media possesses a large audience, a seasoned team of music industry veterans, and the broadest array of music and music-related content available on the Web today. These strong core assets will enhance Yahoo!'s current entertainment offerings and strengthen our leadership position in this space.''

``We believe this transaction is in the best interests of our stockholders,'' said Goldberg. ``The addition of Launch's enormous music video collection and Internet radio service to Yahoo!'s existing entertainment offerings will create even more compelling opportunities for online music fans, established and new artists, and advertisers.''

In a separate announcement, Launch announced that it has settled, as to Universal Music Group, the copyright infringement suit brought by Universal and other major record labels in connection with Launch's Internet radio service, Launchcast. In addition to a payment by Launch for past performances, Launch has entered into a non-exclusive license with UMG for use of UMG-controlled recordings in Launchcast.