The plans are for a merger announcement today. The Orchard and Digital Music Group have seen the light, and that is music online. to be totally honest, I’ve heard of neither company. That doesn’t mean a thing, as it’s apparent they are forging ahead quite well.
The Orchard, a digital music company that has built a business distributing albums from independent labels to online stores like iTunes, plans to announce today that it will merge with Digital Music Group. The combined company will continue to trade publicly under the Digital Music Group’s Nasdaq listing, but it will be controlled by the Orchard and do business under that name.
The Orchard, which is owned by Dimensional Associates, the private equity arm of JDS Capital Management, makes deals to acquire digital distribution rights from labels, then takes a percentage of sales. Digital Music Group makes similar deals, but that company also controls the online rights to some classic television shows like “My Favorite Martian” and owns some recordings outright.
The deal makes The Orchard a 60 / 40 owner of the new company. Which is quite strange if you ask me, as Digital Music Group is listed on NASDAQ. Digital Music Group closed at $3.99 yesterday after the February 2006 IPO of $8.50.
Technically Speaking, digital music distribution is the way to go.
Sphere: Related Content