**OT** Mohan, Please let me know what you think about the upcoming IPO of MP3.com. Thank you and have a nice weekend. Hans
Friday May 14, 9:31 pm Eastern Time
Online music distributor MP3.com plans IPO
SAN DIEGO, Calif., May 14 (Reuters) - Internet music distributor MP3.com Inc., which is named after the popular downloading technology that has caused an uproar in the music business, said on Friday it planned to go public in an initial stock offering that would raise about $115 million.
The MP3 technology, which is not owned by MP3.com, enables people to download music from the Internet, usually at a cost well below typical retail prices.
MP3.com is not the only online company offering MP3 technology, but it has emerged as an early leader. Its Web site (www.mp3.com) contained more than 56,000 songs from over 11,000 artists -- one of the largest collections on the Internet, the San Diego-based company said.
The technology has won strong support from consumers for its ease of use and availability, but has alarmed record companies wary of how easy the Internet has made piracy.
MP3.com, however, faces competition from others delivering music digitally, including AT&T Corp.'s (NYSE:T - news) a2b music, and Liquid Audio.
For their part, music industry leaders, in the form of the Secure Digital Music Initiative (SEMI), are crafting a technology standard to ensure that royalties are paid for music delivered online. They hope to unveil the standard this year.
MP3.com also will face competition on Wall Street.
Internet music firm Liquid Audio Inc., whose Liquid Music System can encrypt digital music so that it cannot be copied illegally, said last week it planned to go public in the next few months. Liquid Audio also offers a secure version of MP3.
MP3.com did not disclose the amount of stock to be offered or the estimated initial selling price in the initial public offering filed with the Securities and Exchange Commission,
The IPO was made in a nominal amount and companies usually amend initial public offering statements to include the specific amount of stock to be sold and at what price.
The company has applied to trade on Nasdaq under the stock symbol (Nasdaq:MPPP - news).
The offering will be made through Credit Suisse First Boston, Hambrecht & Quist, BancBoston Robertson Stephens and Charles Schwab & Co.
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