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UMG Download: EMusic.Com For $24.6 Million (Update)

As the major record labels rush to acquire smaller, independent digital music libraries, Universal Music Group is negotiating to buy EMusic.com Inc. for $24.6 million in cash, sources confirmed Thursday.

UMG signed a nonbinding letter of intent to pay 57 cents a share for the Redwood City, Calif.-based music e-tailer, which owns one of the largest MP3 music libraries. The deal still requires a final agreement and the approval of the boards of both companies. Meanwhile, EMusic is restricted from negotiating with other interested buyers as the deal is hammered out.

An EMusic spokesman would not confirm the company’s buyer but did release the deal’s terms. UMG had no comment.