RealNetworks in Talks to Buy Scour.net

Scour.net, a Beverly Hills-based Internet search company backed by Hollywood super-agent Michael Ovitz, is in talks to be acquired by RealNetworks for as much as $50 million, according to a person familiar with the discussions.

Scour.net’s Web site allows users to find pictures, sound and video files on the Internet--which is becoming increasingly popular as high-speed network connections become more common. This advanced search ability meshes well with RealNetworks’ new Real.com Network, a service launched Monday to guide Web surfers to audio and video programming.

One hurdle for Seattle-based RealNetworks is that privately held Scour.net--founded last year by a group of UCLA computer science students--is controlled by Ovitz and Yucaipa Cos., the investment company of supermarket mogul Ron Burkle. The partners bought a majority stake in Scour.net in June for about $4 million as part of a buying spree to build a portfolio of companies focused on entertainment and electronic commerce.

Ovitz and Yucaipa did not return calls for comment.

Beverly Hills-based e-commerce firm CheckOut.com, is already a partner with RealNetworks. The companies announced a deal in September that makes CheckOut.com the premier music partner and retailer on RealNetworks’ RealJukebox music players.

Talks between RealNetworks and Scour.net are in the early stages, but executives at RealNetworks believe that Scour.net’s predominantly college-aged audience would complement its broader base of more than 85 million customers. They are impressed by the programming abilities of Scour.net’s founders and are eager to see what other technologies they might develop, according to sources.

RealNetworks’ shares lost $12 to close at $127 in Nasdaq trading Tuesday.