New York-based private equity firm Baker Capital has acquired full control of MusicNet, the digital-music service formed in early 2001 by RealNetworks and a consortium of big music labels like EMI and Sony. While the change in control will not result in a "radical change for the company," according to CNET, the deal does highlight "the big music labels' retreat from selling music directly on the Net, in favor of letting brands such as Apple Computer, Microsoft and Napster serve as online song stores."

Paid Content follows up on the Baker Capital - MusicNet deal, speculating that the price tag could have been as high as $50 million. After speaking with industry insiders and sources close to the story, Rafat Ali comments on what the deal means for MusicNet:

"This move is probably best for the survival of the company, as the ownership structure was very complicated. With multiple labels involved, and with RealNetworks owning about 25 percent of the company, any innovation meant getting all the owners involved, a nightmare to say the least (and RNWK's own efforts at parallel with MusicNet)."