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Real to split off Rhapsody as separate company

02/09, 5:30pm

Rhapsody to be pure music firm

RealNetworks in a surprise move tonight broke off Rhapsody as a separate company. The move has the blessing of Real's partner in the venture, Viacom, and will transfer all the rights to Rhapsody so that its streaming and download music services remain intact. Real will also inject $18 million in cash and promises that Rhapsody will be independent, with no one else holding a majority stake.

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