RealNetworks Inc. has announced today the acquisition of European music download service Sony NetServices for $9 million in cash. Prior to Sony NetServices purchase, RealNetworks had acquired South Korea-based mobile music services provider WiderThan, expanding its mobile entertainment portfolio and strengthening its market position in Europe.

RealNetworks expects the acquisition to generate incremental revenue of about $1 million for the second quarter of 2007 and about $7 million for the remainder of 2007, according to a regulatory filing with the Securities and Exchange Commission.

The company expects the acquisition to shave its results by 1 cent per share in the second quarter and by about 3 cents per share for the full year.

The deal also includes a music services agreement for Europe with Vodafone Group, which was Sony NetServices' largest customer. Now, RealNetworks has 12 music-on-demand customers with more than 196 million mobile subscribers in 11 countries giving them a strong position in the European market.