Sputnik7 to Acquire Epitonic

Entertainment content company, Sputnik7(www.sputnik7.com), announced that it has acquired music site Epitonic.com for an undisclosed cash sum.

Sputnik7, which is part-owned by Island Records and Palm Pictures founder, Chris Blackwell, features music, film and anime content. Epitonic's offering includes music reviews, artist information and MP3 files licensed from independent record labels. The combined team will focus on integrating Epitonic's music content and technology into Sputnik 7.

Sputnik has retained eight of EpitonicÂ's staff, who will continue to operate from Epitonic's San Francisco office. Founded in January 1999 with a staff of 30,Epitonic received first round funding from NBCi and CNET, but failed to secure additional financing in the wake of last April's market downturn. Epitonic CEO Aaron Newton approached several other potential buyers before reaching an agreement with Sputnik.

"We're very relieved", said Newton, who concedes that Eptonic was not viable as a business on its own. "At first glance, some of the other potential buyers looked like good fits, but then I'd look at their financial reports or meet the people involved and decide it wasn't such a good idea".

Sputnik and Epitonic share a consistent vision regarding the future of digital media, says Newton. Both sites focus on alternative content which they monetize through terrestrial distribution.

"We feel that the sites' combined offering of technology, artist-relationships and editorial will accelerate Sputnik7's efforts to bridge the online and offline worlds", said Sputnik CEO David Beale. Sputnik is not profitable, but makes money by re-licensing Palm Pictures digital content, advertising, and through sponsorship of ResMedia film festival.