Empik, one of Poland’s major retail outlets, is billed to start sales of digital music over the internet after it took over a majority stake in e-Muzyka, a leader in digital music distribution in the country.

In a deal worth 7.6 million zloty (1.9 million euro), Grupa EMF, the owner of Empik, took over 61.49 percent of the e-Muzyka, which has been traded on the Warsaw Stock Exchange’s New Connect index for over three years.

The move may hamper efforts by Apple’s iTunes, which has yet to offer digital music sales in Poland. Currently, Apple in Poland only offers ‘apps’ for its gadgets, such as the iPhone and iPad, as well as podcast downloads from its UK store only.

e-Muzyka may well fill that gap, as the company has licenses with labels to sell music in digital form, and has contracts with mobile operators to sell ringtones. The company had a turnover of 2.75 million zloty in Q3 of 2010, with net profits of around 88,000 zloty.

Empik bought the e-Muzyka shares from Capital Partners and IQ Partners, and has an option to purchase a further 14.63 percent of shares, which currently belong to the e-Muzyka’s co-founder chairman Robert Knaz.

Grupa EMF, which owns Empik, which is one of the largest retailers in Poland, recently tried to buy out Merlin.pl, Poland’s largest internet bookstore. The deal was blocked by the UOKiK consumer watchdog citing monopoly laws, although EMF has since appealed the decision. (jb)

Source: Wyborcza.biz