NEW
YORK (Baker Capital PR) - Baker Capital, a private equity firm that
invests in global digital communications businesses, today announced
the acquisition of 100% of MusicNet, Inc. from its current
shareholders, a consortium of music and digital technology companies.
MusicNet is the leading provider of digital music subscriptions,
portable subscriptions and downloads.
Founded in 1999, MusicNet
provides content and services to distribution partners such as AOL,
Virgin Digital, HMV and Trans World Entertainment on a private label
basis. Through these partners and others, MusicNet serves over 500,000
subscribers. The Company has the industry's largest catalog of licensed
digital music content with 1.3 million music tracks available to the
users of its services.
As part of the acquisition, the Company
will be capitalized with the funds necessary to expand the scale of its
operations, increase the breadth of its digital content offerings and
launch its growing list of marquee global distribution partners.
MusicNet will continue to operate as an independent company with
headquarters in New York and additional offices in Seattle.
"This
investment is at the core of our investment focus," said Jonathan
Grabel, Partner at Baker Capital. "In MusicNet we believe we have a
winning hand - the most content, the broadest platform and the best
distribution partners. These factors in the context of a wholesale
model are the prerequisites to being the dominant player in the
industry. We have been evaluating investment opportunities in the
digital music space for several years and we believe MusicNet is best
positioned to be the leader in a large and growing global market."
"MusicNet
has been at the forefront of the digital music industry since its
inception," said Joseph Saviano, Partner at Baker Capital. "MusicNet
has the sophisticated infrastructure and the experienced management
team and personnel necessary to launch solutions for global brands and
to assist them to expand into new digital media markets. We capitalized
the Company to facilitate the launch of these initiatives and in
support of our marquee distribution partners."
"In the early
stages of building the business, we greatly benefited from our
strategic alliances with key players in the music industry," said Alan
McGlade, CEO of MusicNet. "Today marks a new chapter in the history of
MusicNet, as our agreement with Baker Capital greatly enhances our
ability to grow, both domestically and internationally, and strengthens
our digital music service offerings across a broad spectrum of partners
that include online portals, traditional retailers, broadband providers
and new areas of expansion such as mobile and international."
