Updated below:America Online has acquired digital music subscription service MusicNow, from CircuitCity. Financial terms of the deal were not disclosed

The new service has been been rebranded AOL MusicNow, from the earlier . This also means that AOL has booted digital music provider MusicNet, its music service provider till now. I’m looking into this now and will have more on this later...

Meanwhile, MusicNow, founded as “FullAudio” in 1999 and purchased by Circuit City in 2004 (for about $6.5 million, according to CC’s SEC filings), will continue to be based in Chicago and operate as a standalone business. The company’s 40 employees, including President Gary Cohen, will be retained.

Updated: AOL MusicNow will continue to work with Circuit City, selling download cards at retail, and engaging in other promotions together, both online and in-store.

Based on some very basic calculations, I estimate the MusicNow purchasing price to be between $10-$15 million.

On MusicNet: AOL was initially an investor in the company, but when MusicNet got bought out by Baker Capital earlier this year, that stake got liquidated. AOL was one of the oldest partners of MusicNet and from some estimates, one of their biggest cutomers..so this is certainly a blow to MusicNet, even though its consumer base is now wide enough.

-- NY VC Firm Baker Capital To Buy MusicNet

-- Management Shakeup At MusicNow

-- Circuit City To Buy MusicNow