Is Music Service MOG in Trouble?
Is MOG in trouble? That is a question that CEO David Hyman has been trying to fend off after a recent report by CNET stated that the subscription music service is struggling and looking for a buyer. According to Billboard Hyman expressed to Reuters that MOG is not “actively” shopping itself, and while the company still operates at a loss, is engaged in the normal course of business.
I guess this all boils down to how we define “actively.” Certainly MOG is discussing options with many companies, but the trick is doing this without word getting out that you are actually for sale. In this economy there are not many who are seeking to invest in a company that is not profitable or wont be there soon.
In a very competitive audio entertainment landscape there are many companies out there trying to figure out how to market their service, raise money, and also pay substantial royalty fees. MOG is not alone in that realm. Perhaps Pandora (NYSE:P) was at the right point in their business growth at the right time and going public allowed a cash infusion that can drive the company over the top and toward profits.
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