MusicMatic buys Mangrove's share in Jamendo, intends to raise more funding

Back in January, TechCrunch Europe broke the news that Luxembourg-based digital music startup Jamendo was running out of money fast and looking for an exit.

Three months later, the company is announcing that European music broadcasting and technology company MusicMatic has purchased the entire stake investor Mangrove Capital Partners held in the startup.

It’s unclear exactly how big Mangrove’s piece of the pie was, but I gather they were a majority shareholder in the company.

Back in January, we reported that the startup went recently looking for 1.5 million euros (roughly $2.15 million) after securing a undisclosed yet self-reportedly ’significant’ amount in Series A funding back in June 2007. The company failed to come to an agreement with Mangrove and a potential new investor.

Now MusicMatic, a company with offices in Belgium, France and Spain, is throwing the company a much-needed lifeline. It seems like a good match: MusicMate’s main activity consists in managing the broadcasting networks of audio and video content in retail outlet chains and other physical points of sale.

MusicMatic now intends to raise more capital and keep running the Jamendo business ‘perpetually’, stating that it will expand its commercial network in France, Benelux, Spain and will have an “improved and innovative product” ready by the end of this year.

Currently, Jamendo is said to represent about 18,000 artists and over 30,000 albums, available for free to the general public. Its catalogue is offered to professionals who are able to purchase a global license at a fairer price than usual, Jamendo taking charge of paying back a part of the rights directly to the artists.

Alexandre Saboundjian, founder and CEO of MusicMatic, will take the lead of the combined entity – former Jamendo CEO Laurent Kratz will retain his Chairman position.