PledgeMusic is up for sale.
Following widespread coverage of its late payments to artists and a barrage of criticism on social media, the D2C platform has confirmed it is in talks with potential buyers.
In a statement, the company said: “We are in discussions with several interested parties about a potential partnership with, or acquisition of, PledgeMusic. These conversations, if successful, would lead to a transaction which would allow us to meet all of our outstanding obligations. As a result, we are hopeful that, as long as the company is given some breathing space to operate, a solution to these current problems will be found.”
Potential buyers have yet to be disclosed. Rival D2C companies in the UK include Townsend and Music Glue, though PledgeMusic is a global operation and it is perhaps likely to find a buyer in the US.
Despite its debts, PledgeMusic said the company has “very significant value” as a “unique platform with millions of active users”.
The announcement of a potential sale follows the return of co-founder Benji Rogers in an advisory capacity.
“Benji will assist and advise the new management and finance team on the inherited and existing issues, as well as with the forward planning for the company,” said the latest statement.
The company confirmed that it is in discussions with an independent third-party to manage all artist funds going forward.
The statement added: “The situation that PledgeMusic has found itself in is unacceptable and to all of the artists, managers, labels and fans who have put their trust in us, we are deeply sorry. All of us at the company are working around the clock to address everybody’s concerns and are hopeful of reaching a positive resolution soon.”