More details have emerged on the acquisition of streaming music service MOG by Beats Electronics, including the price. Beats’ majority shareholder HTC revealed in a note to investors that Beats paid just $14m for MOG, a company that had raised $33m in its lifetime as an independent service.
Meanwhile, the company is being split in two, with Beats buying MOG’s streaming music service, but leaving its music blog network and advertising platform as an independent entity.
How valuable those elements are is open to question though: MOG certainly hasn’t made much noise about them in the last year or so, preferring to focus on its partnerships with the automotive industry on streaming.
What about MOG’s licensing deals, though? Speculation is swirling around their likely renegotiation due to the change in ownership, even if Beats’ official line is that “MOG the music service and the rights they retain will remain the same today as they were last week pre-aqusition”.
All eyes – as ever – will be on Universal Music Group, whose position as a stakeholder in Beats will influence not only its own approach to MOG going forward, but also that of its rivals.
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Fire sale! Beats bought MOG for just $14m http://t.co/hcJMVm4s
Beats bought MOG for just $14m http://t.co/R30wDuUL