Is Spiralfrog in serious trouble? According to numerous sources this week, the answer is yes, barring a late-stage acquisition, cash infusion, or miracle partnership.
Now, more sources are pointing to an imminent demise, or at least a dire situation. Responding to a story published Wednesday on Digital Music News, one source close to the company noted that Spiralfrog is "anxiously scrambling to secure new money," and considering "selling what assets are left" if a lifeline does not emerge. Another advised employees and stakeholders to "grab the life rafts," while also pointing to a late-stage prayer attempt.
The ad-supported company is making serious bets on a speculative, ad-supported music model, one undoubtedly stressed by the current downturn. In fact, the harsh winds of late are causing serious problems for other digital music companies, though the distressed climate is also creating some bargains. "There are deals that may not reappear later," one source said. Another potential purchaser concurred, though picking longer-term success stories remains a tricky game.
Comments Closed
OUR SPONSORS
© 2011 All Rights Reserved
Follow Us