Real Spins Off Rhapsody
Seattle-based RealNetworks and MTV Networks announced today they will spin off their digital music service joint venture, Rhapsody, into a separate company. Under the terms of the deal, RealNetworks (NASDAQ: RNWK) will no longer be the majority owner and operator of Rhapsody; the new company will not have a single majority owner. Real says this is a significant first step in making itself more focused and profitable. More information on the restructuring can be found in the Form 8-K that Real filed with the SEC today. The deal is expected to close at the end of this quarter.