MelodyVR was the music VR startup that acquired Napster with plans to merge the two services. Thanks to it being publicly listed on the UK’s AIM stock exchange, we’ve had some insight into both services’ financials. Now the company has announced plans to delist from AIM, with the aim of raising more funding and eventually listing publicly again in the US.
The plans involve selling its Rhapsody subsidiary (which contains all of its assets and liabilities) to US firm NM Inc for $45.6m. “A US listing would provide not only the appropriate access to capital, but a valuation more aligned to the metrics which have been attributed to some of our music competitors and peers,” is part of Napster’s thinking. “NM Inc will focus on the launch of the new music service without the regulatory burden of a listing on the LSE whilst also distancing itself from the Company’s current public valuation. Furthermore, as a private company, the Directors believe that the Napster business will have greater access to growth capital than it would have if it remained quoted in the UK.”
Any US listing is not likely to happen until 2023.