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Record company sources told the AP Yahoo wants to offer DRM-free MP3s for sale or for free via an ad-supported service. Thank you, in-the-know record executives! Ian Rogers, the general manager of Yahoo Music, publicly said much the same thing back in October.

This news only dwindles even further the value of Yahoo's subscription music service, which its reportedly been trying to offload for around $90 million. Why won't that happen? The most likely buyer, Napster, doesn't have even that much cash lying around. RealNetworks could buy it, but they're more focused on their booming mobile business right now. Or at least they should be.