Crowdfunding platform PledgeMusic says that it’s in discussions with “several interested parties” over a potential acquisition or partnership.
The company issued its latest statement on February 1.
Previously, on Thursday, January 24, PledgeMusic admitted they had financial difficulties. As a result, they were unable to pay artists. PledgeMusic admitted responsibility for late payments to several artists over the past year. However, they stated that they expected to repay all outstanding debts to artists within the next 90 days.
At the time, the manager of a well-known US indie rock band compared the PledgeMusic’s late-payment fiasco to Frye fest. He stated that it was “the Tyre Fest of crowdfunding – seriously”.
Now, PledgeMusic’s tone is apologetic and perhaps more hopeful.
In fact, the company says that it is in discussions with several interested parties. Ultimately the goal of the discussions is a potential partnership , or acquisition of PledgeMusic.
All things considered, the company didn’t supply further details of these conversations. However, they commented if a successful deal is reached, the company will be able to meet all of their outstanding financial obligations. PledgeMusic also stated they are in advanced discussions with an independent third-party company to manage all artist funds going forward.
PledgeMusic made the following statement in regards to this:
We are in discussions with several interested parties about a potential partnership with, or acquisition of, PledgeMusic. 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.
Retrun of Co-founder Benji Rodgers
Another announcement, PledgeMusic announced in the statement that co-founder Ben Rogers returned to the company. He will serve as a volunteer strategic advisor and observer to the board of directors. In this role, Benji will assist and advise the new management and finance team on the inherited and existing issues. He will also assist with the forward planning for the company.
However, Benji will also maintain his current gig as full-time Chief Strategy Officer of DotBlockchain Media.
In closing, the board and management team stated they plan to priortize the settlement of all previously owed back payments.