Audiogalaxy, Headed by Former Austinites, Sold To Dropbox

AudioGalaxy, the operator of an online music streaming service founded by former Austinites Michael Merhej, Tom Kleinpeter, and Viraj Mody, has been sold to file sharing service Dropbox. Financial terms of the sale were not announced. Merhej is best known for having founded the original Audiogalaxy peer-to-peer file sharing service in Austin--shut down by the RIAA--out of hits dorm room at the University of Texas at Austin. Merhej later founded Austin's Foldershare, which was acquired by Microsoft in 2005. Kleinpeter also was at UT Austin and had been part of Foldershare, and Mody was also at the University of Texas and served at Microsoft. Audiogalaxy was based in Seattle, where Merhej moved after Microsoft bought Foldershare.