HTC’s Beats Audio paid only $14 million for MOG
So how much did Beats Audio pay for MOG? $14 million, according to HTC’s Investor relations.
It is not clear what exactly Beats Audio bought from MOG, the announcement says “certain assets owned by MOG, Inc.” for a “total monetary amount of the transaction – USD 14,000,000”.
According to the official press release , it seems that MOG will be split up into two companies. The streaming music service, and the ad/music blog network. With Beats Audio taking full ownership of the music streaming service, but running it as an independent company.
Given the prices consumer facing social web/mobile properties go these days – $14 million for streaming music part of MOG, sounds like a pocket change. It seems that the service failed to gain traction and got too expensive to run, so its investors just gave up, selling this part of the business for the value of the deals with the music labels, and not much more.
I hope Beats and HTC can do better with it.