Last week, MOG reportedly went up for sale. According to CNET, the music subscription service has been reaching out to potential buyers to gauge interest in an acquisition. Although MOG boasts over 500,000 active users, the Berkeley, California-based company has "struggled to stand out" amid other services such as Spotify and Rdio. "We’re constantly speaking with companies and looking for the best opportunity for our business and our shareholders," a MOG spokesperson told CNET.
Initially, Rhapsody was foreseen as an interested buyer. In 2008, Rhapsody became Yahoo’s de facto music service and last year, it nabbed Napster away from Best Buy. These two strategic moves have made Rhapsody the largest music streaming service in the U.S. with over a million paid subscribers.
Shortly after CNET published the story, however, MOG founder and CEO David Hyman clarified the comments. Hyman told Reuters that they were not "actively" seeking a buyer. Instead he implied that being a venture-backed private company means being open to exploring all possibilities, including partnerships and social media integration. Sony Music and Universal Music Group have both invested in MOG.
"We're not actively trying to sell this business," Hyman told Reuters. "The Facebook integration has been fantastic for us, but as we’re not yet profitable, we’re always engaged in conversations with our shareholders about all possible options."
Also contradicting CNET’s claim that MOG was facing financial struggles, Hyman mentioned that the company is currently hiring. Founded in 2005, MOG has not laid off a single employee since 2009. MOG’s revenue comes from a combination of user subscriptions and an online advertising network currently displaying ads on 1,700 music websites. Worldwide streaming music subscriptions rose 64 percent to 13.4 million in 2011.
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