Yahoo! buys Dotmusic and Games Domain from BT

LONDON - Yahoo! Europe has refused to rule out the eventual closure of Dotmusic, after buying the music news site from BT today.

Yahoo! buys Dotmusic and Games Domain from BT

The deal, for an undisclosed sum, also sees Yahoo! Europe taking control of gaming site . and Games Domain will be integrated into Yahoo!'s music and gaming activities on the .

A spokeswoman for Yahoo! Europe said that an integration team was now looking at a number of possibilities for Dotmusic and Games Domain. There will be no compulsory redundancies, with some staff remaining with the sites and others being redeployed within BT.

Dotmusic currently carries news and features about music, and earlier this year it began to offer downloads. Yahoo! already has its own music section called Launch, which will be unaffected by the acquisition of Dotmusic.

BT bought the site, which began life as the portal for the trade magazine Music Week, from United Business Media in March 2002, in a deal worth £1m.

Mark Opzoomer, managing director and regional vice-president of Yahoo! Europe, said that the deal made strong commercial sense for Yahoo! and BT.

"Yahoo! has a proven track record in the music and gaming field and the additional content from Dotmusic and Games Domain will further the goal of providing Yahoo!'s UK and Ireland consumers with a compelling customer proposition," he said.

The sale expands the relationship between BT and Yahoo! further. Last month, the two launched a new jointly branded broadband service, BT Yahoo! Broadband backed by a £10m marketing push, including a television advertising campaign created by Clemmow Hornby Inge.

Duncan Ingram, managing director of BT Openworld, said: "This agreement is a natural extension of our stated strategy and will add to the attractiveness of the overall BT Yahoo! offering for our current and future customers."

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