the tools and talents to aid the success of this and other digital-content distribution ventures," said Messier. "Their engineering and digital expertise will be a tremendous advantage for Vivendi Universal, especially in the digital distribution of all Vivendi Universal content and the creation of common technology platforms."
Vivendi also owns the music-discovery site Farmclub.com and the content site GetMusic, and it is in the process of acquiring the digital-download retailer EMusic, which also operates RollingStone.com and Downbeat.com.
Vivendi Universal did not comment on outstanding lawsuits against MP3.com, but one company source says it "has done extensive due diligence on the question of litigation. While risks associated with this or any litigation should not be minimized, we believe that adequate measures have been taken to protect the interests of Vivendi Universal."
A number of lawsuits are still pending against MP3.com, mostly from independent music labels and artists, including Nashville, Tenn.-based Major Bob Music. Tom Waits, Randy Newman and members of the band Heart also sued MP3.com for $40 million in early May.
It remains uncertain how much of MP3.com's management and how many of its employees will stay on. (The press release stated that 120 MP3.com technologists will help Vivendi Universal get a handle on its digital content-delivery initiatives.) Vivendi Universal spokeswoman Anita Larsen highlighted MP3.com's "strong management and technology team." In a prepared statement, the company said MP3.com founder and chief executive Michael Robertson would become the digital distribution "special adviser" to Vivendi Universal chief Messier.
It's also unclear exactly when the deal is expected to receive shareholder approval. In a statement, Vivendi said MP3.com's board of directors has already approved the deal, and that MP3.com shareholders whose total holdings in MP3.com are more than 50 percent have already agreed to sign off on the transaction.
For now, MP3.com will maintain its brand. This is interesting, considering the major labels' distaste for the open MP3 file format, whose unencrypted nature is partly blamed for the spread of digital music piracy.
