Tokyo-based smartphone messaging application Line, a unit of South Korean Internet company Naver, recently made its first-ever acquisition. The company has agreed to buy mobile music streaming app MixRadio from its current owner Microsoft, reports the Wall Street Journal.
A Line spokesman told the Wall Street Journal that this is the first business the closely held company has acquired. Line’s focus on music is part of its broader strategy of building a one-stop shop for communication, commerce and entertainment.
The messaging app is already linked to a wide array of services including games and e-commerce, and the company is preparing to launch its own music streaming service called Line Music. According to the company’s spokeswoman, Line considers Line Music and MixRadio to be separate services.
Recently, Line also set up a joint venture called Line Music with Japanese music label Avex Digital and Sony Music Entertainment.
For Microsoft, the deal is part of a reorganization strategy after the U.S. technology giant bought Nokia’s mobile phone business in April for more than $7 billion.
MixRadio, originally launched by Nokia, has millions of listeners in 31 countries around the world, according to Line’s statement. MixRadio will continue to work with Microsoft as a third party to offer its music streaming service for its Lumia smartphones.
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