As the bankrupt promoter goes through a process of restructuring, it looks like download service Beatport will be the first subsidiary to go
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Artist-to-fan marketplace “hopeful of reaching a positive resolution soon” following talks with potential new partners or owners
By Anna Grace on 04 Feb 2019
PledgeMusic co-founder Benji Rogers
Direct-to-fan marketplace PledgeMusic has announced it is in talks with “several interested parties” regarding a potential partnership or acquisition. The company admitted to owing significant sums of money to multiple artists last week.
The PledgeMusic board and management released a statement today, announcing discussions with parties wanting to enter into a partnership with PledgeMusic, or acquire the company.
“These conversations , if successful, would lead to a transaction which would allow us to meet all of our outstanding obligations. As a result, we are hopeful that, as long as the company is given some breathing space to operate, a solution to these current problems will be found,” reads the statement.
The company is also in “advanced discussions with an independent third-party company” that will take control of “all artist funds going forward.”
PledgeMusic co-founder, Benji Rogers, has returned to the company as a volunteer strategic advisor and observer to the board of directors.
“For a lot of you patience must be wearing very thin, but we can only reiterate that we are fully focused on making this situation right”
“Benji will assist and advise the new management and finance team on the inherited and existing issues, as well as with the forward planning for the company,” says the PledgeMusic board.
Rogers comments: “I am convinced that they [PledgeMusic management team and board] are committed to fixing the artists payments situation as their first priority. I have seen first hand how tirelessly the team, management and board have been working to right the ship and that is why I have agreed to help where I can.”
PledgeMusic owes thousands to artists who have raised funds through its platform, a situation the company has called “unacceptable”.
The PledgeMusic team states that its priority is to settle all remaining back payments owed to artists and asks for “patience”:
“We know that for a lot of you this must be wearing very thin, but we can only reiterate that we are fully focused on making this situation right.”
The full statement can be read here.
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