A music-streaming service whose shareholders include the U2 bassist Adam Clayton and the financier Guy Hands is closing in on a solvent restructuring that will pave the way for it to launch a string of new interactive TV channels in the US.
Sky News has learnt that the assets of MagicWorks, which trades as ROXi, are to be sold to a new company called FastStream Interactive, which will be backed by a number of American broadcasters.
The deal, which could be finalised as soon as next week, will see the business raising roughly £5m of new equity from new and existing investors.
Sources said the funding would be used to facilitate the launch of conventional broadcast channels enabling viewers to skip through content in which they have no interest.
FastStream’s own interactive TV music video channel is understood to be preparing to launch next month, they added.
The company’s other backers include a number of US-based broadcast networks – understood to include Sinclair – and several media industry executives, such as former ITV executive Rupert Howell.
One insider said the restructuring and sale of the assets would see ROXi’s creditors repaid in full.
Read more from Sky News:
The electric shock behind Europe’s stuttering EV future
Direct Line set to accept sweetened Aviva takeover bid
Guardian signs controversial deal to sell The Observer
Simon Cowell, Kylie Minogue and Robbie Williams were among the prominent music industry figures who had previously been named as ROXi investors.
Begbies Traynor Group, the professional services firm, and Rockefeller Capital Management have been advising on the process.
One said it was expected to complete on or around 12 December.
Founded in 2014, ROXi described itself as the world’s first “made-for-television” service, allowing viewers to stream millions of songs and download hundreds of thousands of karaoke tracks.
Its search for funding from the US was seen as vital because of the programme to roll out its FastScreen technology.
One source said the new services were expected to be showcased at the Consumer Electronics Show (CES) in Las Vegas in early January.
A spokesman for the company declined to comment.
+ There are no comments
Add yours