The deal has not been finalized and the details are uncertain, but sources close to the matter suggest headphone maker Beats Electronics is acquiring the subscription music service MOG.
Phone manufacturer HTC is the majority owner of Beats. The company is interested in MOG’s deals with the major music labels and its music service, which could be offered on HTC handsets.
“MOG raised a reported $25 million over the course of its corporate history, and $15 million in the last few years, as it bolted a music service onto an ad network, its original business,” reports AllThingsD. “Last spring, it went looking for another $25 million to $30 million, and apparently ended up with this deal instead.”
MOG doesn’t have a strong following with only 500,000 active users, but its collaboration with Facebook and its “frictionless sharing” program has resulted in 130,000 people using the service at least once a month. However, insiders say the subscriber base isn’t the focus but rather the deals with the labels.
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