MusicMatic buys Mangrove's share in Jamendo, intends to raise more funding

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Back in January, TechCrunch Europe broke the news that Luxembourg-based digital music startup Jamendo was running out of money fast and looking for an exit.

Three months later, the company is announcing that European music broadcasting and technology company MusicMatic has purchased the entire stake investor Mangrove Capital Partners held in the startup.

It’s unclear exactly how big Mangrove’s piece of the pie was, but I gather they were a majority shareholder in the company.

Back in January, we reported that the startup went recently looking for 1.5 million euros (roughly $2.15 million) after securing a undisclosed yet self-reportedly ’significant’ amount in Series A funding back in June 2007. The company failed to come to an agreement with Mangrove and a potential new investor.

Now MusicMatic, a company with offices in Belgium, France and Spain, is throwing the company a much-needed lifeline. It seems like a good match: MusicMate’s main activity consists in managing the broadcasting networks of audio and video content in retail outlet chains and other physical points of sale.

MusicMatic now intends to raise more capital and keep running the Jamendo business ‘perpetually’, stating that it will expand its commercial network in France, Benelux, Spain and will have an “improved and innovative product” ready by the end of this year.

Currently, Jamendo is said to represent about 18,000 artists and over 30,000 albums, available for free to the general public. Its catalogue is offered to professionals who are able to purchase a global license at a fairer price than usual, Jamendo taking charge of paying back a part of the rights directly to the artists.

Alexandre Saboundjian, founder and CEO of MusicMatic, will take the lead of the combined entity – former Jamendo CEO Laurent Kratz will retain his Chairman position.

  • Deuterome

    That’s a good news, Jamendo is great ! These guys have proved that there is an other way to listen music.

  • mike23w

    I like Jamendo.. wow!

    http://WWW.PHOTOHIDE.COM – hide the face on your personal photos, free!

  • Ryan Born

    Jamendo will be used by MusicMatic as a library from which to license tracks to retails outlets and avoid the high performance licensing fees that the performance licensing organizations (i.e. oversears equivalents of ASCAP & BMI) charge just to play music in your store – e.g. for music playing at the GAP in a mall in the US, the GAP has to pay the PRO for a license to play music by artists that are members of the PRO and most artists in the US are. To avoid the high PRO licensing fees, it’s a popular practice outside of the US to get your music from non-PRO outlets like MusicMatic for a reduced fee. Jamendo is a nice library of this type of music (i.e. non-PRO music) and will be used my MusicMatic for some sort of enhanced non-PRO music offering for retail outlets in Europe. It’s probably not a massive market, but a good one, and one that MusicMatic can conquer and make good cash flow doing so.

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  • Braddddd

    HAHA…that is really gonna sell Tech Crunch! Nice work Mikey, I am sure you will close the deal with that killer comment.

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