Business News Deals Digital

UBC confirms 7digital merger moving forward

By | Published on Tuesday 18 March 2014

7digital

7digital’s merger with radio industry content maker and service provider UBC Media Group is one step closer after the latter confirmed a heads of terms had now been signed by both parties outlining the basics of how the consolidation will work.

UBC is already listed on London’s Alternative Investment Market while MP3 seller 7digital is privately owned. This transaction would basically be a reverse takeover, giving 7digital a stock market listing and creating a combined business with interests in digital music delivery, audio content production and service provision for the digital content and broadcasting sectors. Merger talks are in theory still ongoing, though UBC expects to publish a document in late May which will formally set things in motion.

Meanwhile UBC has confirmed Audioboo, the audio content platform in which the media company has a 39% stake, is set to be acquired by a corporate vehicle called One Delta, in which the media company would then own a 20% stake. The arrangement should provide Audioboo with new finance for future growth.

Commenting on all this, UBC CEO Simon Cole told investors: “Our aim is to create a new public company via 7digital which will be perfectly placed to exploit the rapidly developing market for online and mobile music services. The evidence is that the growth in this market will be in curated services which consolidate music and radio in one place and our new company will be perfectly placed here”.

He went on: “Our strategic investment in Audioboo complements this well and I’m pleased that today we have found a way to both finance Audioboo’s future at a good valuation and secure value for our shareholders in any future growth”.



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