e.Digital Corporation (fka EDIG)

[bostonredsox]

MP3.com, EDIG, WeDigMusic, Vivendi Universal, et.al

MP3.com's parent company to undergo reorganization
Tue Sep 24, 9:05 PM ET

http://story.news.yahoo.com/news?tmpl=story&u=/020925/31/2beqh.html

You don't hear much about San Diego-based MP3.com Inc. since it was enveloped by French media conglomerate Vivendi Universal in a $372 million cash and stock acquisition finalized a year ago this month.

The once high-profile digital music Web site has become a component of a larger Vivendi Universal machine -- a machine that looks to get a major overhaul, plans for which are to be announced from Paris on Wednesday. Jean-Rene Fourtou, chairman and chief executive of Vivendi Universal, has promised creditors he will sell 5 billion euros in assets before the start of next year, and another 10 billion euros in the next two years.

There has been plenty of speculation as to what assets might be marked for sale. Most suspect all or part of publishing arm Vivendi Universal Publishing, utility group Vivendi Environnement and satellite TV operator Echostar Communications will be sold. Staff could also be trimmed at Vivendi Universal's Paris headquarters.

Vivendi Universal won't confirm or deny the speculation. Posted on its homepage, the company says: "Following the many rumors about possible asset disposals, Vivendi Universal would like to again emphasize that no statement or comments will be made on disposals before their completion."

MP3.com is many layers into the Vivendi Universal fold. The Web site is part of the music and media group Vivendi Universal Net USA Group Inc., which is the United States arm of VUNet, which is Vivendi Universal's Internet and technology unit.

Steve Curry, spokesman for Vivendi Universal Net USA, says Vivendi Universal has in the last year bought up several online music companies, and combined their operations in San Diego.

MP3.com now shares its Eastgate Mall office space with RollingStone.com, EMusic.com, GetMusic.com, and sister Web site MP4.com. A Vivendi Universal technology group also co-inhabits the University Towne Centre complex, bringing the total staff there to about 250 people, according to Curry. MP3.com alone employed 300 people at the time of its acquisition by Vivendi Universal.

The effects of the Vivendi Universal reorganization on MP3.com aren't known by local officials yet, and may still not be clear after Fourtou's announcement.

"They're going to lay out the large, corporate, overall strategy," said Curry. "I would expect it would be a large corporate picture."

When Vivendi Universal acquired MP3.com, it said the deal would further its goal of becoming the industry's top music service provider>/b>. Vivendi Universal was previously among the five major record labels that sued MP3.com, alleging copyright infringement for the MyMP3.com music-sharing service. MP3.com eventually agreed to pay Universal Music Group $53.4 million.

MP3.com is still making deals locally. San Diego-based e.Digital Corp. (OTC: EDIG) said Tuesday it has entered into a joint marketing partnership with MP3.com to offer a condensed version of MP3.com's two-hour college radio program "The Download."

E.Digital is launching its own music site, to be called WeDigMusic.com, in the next week or two, according to company spokeswoman Lisa Stevens.

Financial terms of the partnership were not disclosed.

Bryan Jones, vice president of broadband entertainment for e.Digital, previously served as vice president of strategic programming at MP3.com.