Audiogalaxy which re-launched as a cloud music service in March that combines an online locker with music discovery through Pandora like playlists created by a proprietary algorithm and user preferences. No details of the deal were announced, but guarded statements from the Audiogalaxy team suggest that this could be more that a coding talent "acqui-hire".
The original Audiogalaxy, a sophisticated p2p client, was shuttered in 2002 after a music industry lawsuit. Next, the team created Foldershare, a Dropbox-like file sharing service sold to Microsoft in 2005. Much of the team reunited in 2008 to specifically create a new music service. Yesterday, the current iteration of Audiogalaxy stopped accepting new signups and announced that playlists would only be available until the end of the year.
Apple, Google and Amazon have all launched cloud music lockers, and Dropbox is a less complete online music storage option without one. The official Audioglaxy statement calls it a "transition" and excitement over the opportunity "bring great new experiences to 100M+ Dropbox users". Late yesterday, Audiogalaxy CEO Michael Merhej also told GigaOm, "there are natural synergies in the talent our team possesses and Dropbox's mission."