Doug Camplejohn and David Pakman established Myplay in 1999, one of the first companies permitting consumers to store music on the Internet in digital lockers.
Music strategy The move is part of BMG 's digital-music distribution strategy, BeMusic. Consumers will have digital access to music collections from anywhere on the Web. These collections will be built through online sales and other subscription-based services.
The financial details of the deal have not been hammered out, but Myplay has been valued at $30 million. This is less than $200 million Yahoo would have paid for the company last year.
In February this year, Californian based Myplay cited a change of company focus as the reason for laying off 41 per cent of its staff, a total of 22 employees.
BMG has courted controversy in the past by affiliating itself with song-swapping service Napster. The company also owns online music-company CDNow.