MusicNet Inc. has been sold to the private equity company Baker Capital for an undisclosed amount, it said Wednesday.
MusicNet, which sells digital music subscriptions, portable subscriptions and downloads as a private label to retailers, was one of the first digital music companies, launched in 1999 by RealNetworks, Time Warner (which at the time owned Warner Music), Bertelsmann, and EMI Group.
MusicNet serves over 500,000 subscribers through its partners, including AOL, Virgin Digital, HMV and Trans World Entertainment, it said.
Though the full terms of the agreement were not disclosed, RealNetworks said Tuesday in a separate release that for its 40 per cent stake in MusicNet, it has received $7.3 million and expects another $2.7 million after escrow arrangements expire.
Baker Capital said it will invest to expand the scale of MusicNet's operations in mobile and international markets.