AOL Buys Xdrive Online Storage Service

Posted on August 8, 2005

AOL has acquired Xdrive, an online service that provides secure online storage for digital files, including music files and video. Xdrive members can also use the service to share files. CNET calls it an online locker service in its report. Xdrive, Inc. has 34 employees. It currently charges $9.95 a month for 5 GB of online storage.

Gio Hunt, senior vice president of new business ventures at AOL, says in a statement, "The digitization of consumer home media is skyrocketing, with consumers and AOL members increasingly looking for easier ways to protect and manage a wide variety of important data files and digital media assets. Xdrive will further enhance AOL's consumer storage offerings to deliver a more safe and secure digital lifestyle for our members.

Update: AOL started offering 5 GB of storage for free through Xdrive in 2006. AOL shut down Xdrive in 2008 along with AOL Pictures and Bluestring.

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