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.

Gregory T. Huang is Xconomy's Deputy Editor, National IT Editor, and Editor of Xconomy Boston. E-mail him at gthuang [at] Follow @gthuang

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