Thursday, January 12, 2012

Schibsted to buy music streaming service

Norway-based media group Schibsted has made a cash offer for Swedish streaming service Aspiro AB.

The bid of 340 million Swedish crowns (US$49.04 million), or 1.65 crowns per share, is 33 percent more than Aspiro’s closing price of 1.24 crowns yesterday, Reuters reported today.

If the offer is accepted, Schibsted will take control of Aspiro, which delivers music and television streaming services (music is delivered to users under the WiMP brand name), the press release stated.

Aspiro has succeeded at something many publishers want as well – getting users to pay for digital content.

“Together with the management of Aspiro, we are convinced that Schibsted will be able to accelerate Aspiro’s development through our combined experience from online businesses and by utilizing Schibsted’s existing online distribution channels across Europe. We see potential for further value enhancement in Aspiro as part of Schibsted, as we belive that the company is better positioned to grow as part of a larger group. In the future, we may also seek strategic partners to further utilize the potential in WiMP music streaming services,” Schibsted CFO Trond Berger stated in the press release.

Aspiro’s WiMP music streaming service is delivered to telecommunications companies Telenor and Canal and PT in both Denmark and Norway, through Norwegian entertainment seller Platekompaniet, as well as through Portugal’s PT, paidContent reported. The monthly cost for the service is 99 Norwegian crowns ($16.53).

WiMP also plans to launch in Ireland and Germany, and had about 350,000 paying users as of September, according to paidContent.

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