More Details on Loudeye’s Acquisition of OD2–Part II

More details are coming in on the Loudeye-OD2 deal. Some of them are below. I also had a quick chat with Jeff Cavins, CEO of Loudeye, on the deal, and will have details later.
By the way, Loudeye’s shares are up almost 18 percent in late-session trading on Nasdaq…

FT.com: Both men [Peter Gabriel and Charles Grimsdale] will make millions from the deal. Peter Gabriel has an 18 per cent stake in OD2, Charles Grimsdale has 15 per cent and the Quester and NIF venture capital funds hold 49 per cent after leading consortia that provided £6.5m in financing since the company was founded in 1999….Grimsdale said development teams would be enlarged and work was being focused on providing music services for mobile operators.

The Register: Virgin is expected to desert OD2/Loudeye in due course, following the formation of Virgin Digital, which will resell songs sourced from Loudeye rival MusicNet…Going forward, OD2/Loudeye’s big challenge will be to find partners who can match the big guns’ marketing muscle and match the pricing bar put in place.

Times UK: It is tempting to detect the hand of Peter Gabriel, the OD2 co-founder and musician noted for his moral stand, in the company’s decision not to seek a tie-up with a more major company. Mr Gabriel this morning said he believed the merger “would deliver the best digital music service for both consumers and labels that is also committed to being fair to artists.”

Related:

More Details on Loudeye’s Acquisition of OD2

Loudeye Purchases EU Digital Music Service OD2

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