SanDisk Acquires MusicGremlin

MILPITAS, Calif.– SanDisk Corporation (NASDAQ: SNDK), a leading seller of MP3 players in the United States, today announced it has acquired MusicGremlin, a privately-held technology company that develops advanced digital content distribution technologies. The acquisition falls under SanDisk’s Sansa™ audio/video business unit.

“MusicGremlin’s digital distribution platform and capabilities will provide SanDisk with adaptive and innovative technology that will play a key role in the development of future Sansa products for consumers,” said Daniel Schreiber, general manager and senior vice president for SanDisk’s Sansa audio/video business unit.

Robert Khedouri, co-CEO and co-founder of MusicGremlin, will join the Sansa team as vice president of services.

“SanDisk and MusicGremlin share a core passion for granting consumers easy access to digital content,” said Khedouri. “We’re very pleased that MusicGremlin technologies will soon contribute to a new generation of Sansa products and services. We look forward to joining SanDisk in realizing our vision for the future of distributed media.”

Terms of the deal are undisclosed.