There has been some uncertainty around the relationship between B2B digital-music firm 7digital and retail group MediaMarktSaturn in recent months.
In January it emerged that the companies were in talks over the future of MediaMarktSaturn’s Juke music service, which 7digital powers. Now that’s been settled. “Under the Agreement, 7digital has accepted settlement of, and release from, all outstanding contracts and commitments relating to the Juke music service for an immediate payment by Juke of €4,000,000,” explained 7digital’s announcement to the stock market. “Further, Juke has agreed to write off all interest payments and £250,000 of the principal amount of the convertible loan note issued to Juke (as announced on 26 October 2018). 7digital will pay the balance of the convertible loan note principal amount, £500,000, from the proceeds of the Agreement.”
The deal will also see MediaMarktSaturn pursuing an “orderly sale” of its stake in 7digital. “I am extremely pleased to put this period of uncertainty behind us. Whilst we would have preferred not to have been in this position, we are very satisfied with the settlement which represents the full value of all future financial commitments by Juke,” said CEO Simon Cole. “The immediate injection of cash will allow us to restructure our overhead base and reposition the company for continued growth.”
Tools: platforms to help you reach new audiences
Tools: Kaiber
In the year or so since its launch, AI startup Kaiber has been making waves,…