Monday, February 7, 2005

Xdrive Releases Virtual iPod, On the Block?

Santa Monica-based Xdrive is announcing this morning that it is launching a new music service that allows people to listen to their digital music collections through any Treo phone, Palm, Tungsten, or Sony Clie PDA. The service stores the user's music collection through the Xdrive online Internet site and streams audio through their cell phone connection. Xdrive is positioning the service against portable digital music players like Apple's iPod. The new service comes as the company is again refocusing on the consumer market, and says that it will also roll out a digital photo album service next month. The company itself may be up for sale; a source close very to the company reports that Xdrive has engaged an investment banking firm, and is close to a "major strategic relationship" deal with an ISP or portal. If the company is up for sale, it would not be a big surprise; sources in the industry say that a sale of the company is overdue.

---