By taking over Bristol, UK-based OD2, Loudeye said it is acquiring the largest digital music provider in Europe, and said the combined company will serve more than 200 customers in 15 countries. Loudeye CEO Jeff Cavins said that together they could deliver a digital media platform to enable companies to launch digital media offerings around the world.
Seattle, Washington-based Loudeye is paying $20.7m upfront, comprised of $18.4m in stock and cash of $2.3m and a further $18.8m over the next 18 months in cash or shares, if OD2 reaches certain performance targets.
For its first quarter to March 31, Loudeye recorded a net loss of $2.8m, down from a loss of $13.1m on revenue 42.7% down at $1.9m. The OD2 acquisition gives it a final opportunity to find a path to growth.
