SanDisk may have failed to appeal the masses with its now defunct TakeTV video player device and Fanfare software suit, but that isn’t stopping the company from beefing up its Sansa audio and video business unit through other means. The flash memory and media player maker today announced it the acquisition of MusicGremlin, a privately-held company that develops digital content distribution technologies and Wi-Fi enabled media players.

SanDisk plans to leverage MusicGremlin’s technologies and digital distribution to bolster its own line of Sansa media players, though exactly how remains to be seen. The addition of a Wi-Fi-capable portable music player to SanDisk’s current product line could certainly help the company compete against rivals such as Microsoft in their quest to steal some market away from the almighty iPod.