RealNetworks Announces Support For Acquisition Of Rhapsody International, Inc. By MelodyVR Group PLC
SEATTLE, Aug. 24, 2020 /PRNewswire/ -- RealNetworks, Inc. Author:
Aug 25, 2020 2:05 AM EDT
SEATTLE, Aug. 24, 2020 /PRNewswire/ -- RealNetworks, Inc. (Nasdaq: RNWK) today announced its support for the acquisition of Rhapsody International, Inc., which does business as Napster, by MelodyVR Group PLC. RealNetworks is the majority owner of Napster, with an approximate 84% stake. MelodyVR Group PLC, the leading creator of live virtual reality music experiences, intends to combine its MelodyVR subsidiary with Napster to create a new differentiated entity. The acquisition is expected to close in the fourth quarter of 2020. "Rhapsody and Napster have travelled a long and winding road," said Rob Glaser, Chairman and CEO of RealNetworks and Chairman of Napster. "We first became involved with Rhapsody when we acquired Listen.com in 2003, and then Rhapsody acquired Napster in 2011. We are proud of our stewardship of this pioneering business and iconic brand, and grateful for the hard work by the entire Napster team to keep the torch alive all of these years. We're delighted to pass the baton to Anthony Matchett and the innovative team at MelodyVR. We'll continue to root for Napster and are pleased that we'll be ongoing stakeholders in MelodyVR's success." "Going forward, Real will continue to focus the operations of Real on our primary growth initiatives, such as our SAFR computer vision platform and our GameHouse free-to-play casual games business," Glaser continued. "We will also continue to nurture innovation, for example our Scener watch party service and platform." Rhapsody was the first on-demand streaming music service to offer monthly subscribers unlimited access to a massive library of digital music. It was also the first music service to provide content from the top five major record labels of the time. RealNetworks acquired the Rhapsody service in August of 2003. In 2010 Rhapsody began operating as an independent entity, rebranding itself in 2016 as Napster, followed by a pivot to the "Powered by Napster" B2B strategy, which focused on selling the Napster music Platform-as-a-Service. The Napster platform began 2020 with over 3 million users on four continents, delivering more than 90 million licensed tracks to consumers and the many B2B and Platform-as-a-Service partners. It served 10.8 billion streams in 2019 with revenues of $113 million. The price of the acquisition is approximately $70M, comprising $15M in cash, $11M in MelodyVR stock, and assumption by MelodyVR of approximately $44M in payment obligations, primarily to various music industry entities. Consideration payable to RealNetworks is subject to a $3M escrow and certain further indemnity claims, as well as contingent consideration obligations associated with its acquisition of Columbus Nova's 42% stake in Napster in January of 2019. Real intends to provide additional details regarding the expected economic benefits to Real of this transaction at its Q3 earnings call in early November, or sooner if the MelodyVR transaction closes before then. About RealNetworksBuilding on a legacy of digital media expertise and innovation, RealNetworks has created a new generation of products that employ best-in-class artificial intelligence and machine learning to enhance and secure our daily lives. SAFR ( www.safr.com ) is the world's premier facial recognition platform for live video. Leading in real-world performance and accuracy as evidenced in testing by NIST, SAFR enables new applications for security, convenience, and analytics. For information about our other products, visit  www.realnetworks.com . RealNetworks is a registered trademark of RealNetworks, Inc. All other trademarks, names of actual companies and products mentioned herein are the property of their respective owners. For More Information:
View original content to download multimedia: http://www.prnewswire.com/news-releases/realnetworks-announces-support-for-acquisition-of-rhapsody-international-inc-by-melodyvr-group-plc-301117523.html
SOURCE RealNetworks, Inc.

RealNetworks Announces Support For Acquisition Of Rhapsody International, Inc. By MelodyVR Group PLC

News provided by
Share this article
SEATTLE, Aug. 24, 2020 /PRNewswire/ -- RealNetworks, Inc. (Nasdaq: RNWK ) today announced its support for the acquisition of Rhapsody International, Inc., which does business as Napster, by MelodyVR Group PLC. RealNetworks is the majority owner of Napster, with an approximate 84% stake. MelodyVR Group PLC, the leading creator of live virtual reality music experiences, intends to combine its MelodyVR subsidiary with Napster to create a new differentiated entity. The acquisition is expected to close in the fourth quarter of 2020. "Rhapsody and Napster have travelled a long and winding road," said Rob Glaser, Chairman and CEO of RealNetworks and Chairman of Napster. "We first became involved with Rhapsody when we acquired Listen.com in 2003, and then Rhapsody acquired Napster in 2011. We are proud of our stewardship of this pioneering business and iconic brand, and grateful for the hard work by the entire Napster team to keep the torch alive all of these years. We're delighted to pass the baton to Anthony Matchett and the innovative team at MelodyVR. We'll continue to root for Napster and are pleased that we'll be ongoing stakeholders in MelodyVR's success." "Going forward, Real will continue to focus the operations of Real on our primary growth initiatives, such as our SAFR computer vision platform and our GameHouse free-to-play casual games business," Glaser continued. "We will also continue to nurture innovation, for example our Scener watch party service and platform." Rhapsody was the first on-demand streaming music service to offer monthly subscribers unlimited access to a massive library of digital music. It was also the first music service to provide content from the top five major record labels of the time. RealNetworks acquired the Rhapsody service in August of 2003. In 2010 Rhapsody began operating as an independent entity, rebranding itself in 2016 as Napster, followed by a pivot to the "Powered by Napster" B2B strategy, which focused on selling the Napster music Platform-as-a-Service. The Napster platform began 2020 with over 3 million users on four continents, delivering more than 90 million licensed tracks to consumers and the many B2B and Platform-as-a-Service partners. It served 10.8 billion streams in 2019 with revenues of $113 million. The price of the acquisition is approximately $70M, comprising $15M in cash, $11M in MelodyVR stock, and assumption by MelodyVR of approximately $44M in payment obligations, primarily to various music industry entities. Consideration payable to RealNetworks is subject to a $3M escrow and certain further indemnity claims, as well as contingent consideration obligations associated with its acquisition of Columbus Nova's 42% stake in Napster in January of 2019. Real intends to provide additional details regarding the expected economic benefits to Real of this transaction at its Q3 earnings call in early November, or sooner if the MelodyVR transaction closes before then. About RealNetworks
Building on a legacy of digital media expertise and innovation, RealNetworks has created a new generation of products that employ best-in-class artificial intelligence and machine learning to enhance and secure our daily lives. SAFR ( www.safr.com ) is the world's premier facial recognition platform for live video. Leading in real-world performance and accuracy as evidenced in testing by NIST, SAFR enables new applications for security, convenience, and analytics. For information about our other products, visit  www.realnetworks.com . RealNetworks is a registered trademark of RealNetworks, Inc. All other trademarks, names of actual companies and products mentioned herein are the property of their respective owners. For More Information:

RealNetworks Announces Support for Acquisition of Rhapsody International, Inc. by MelodyVR Group PLC

0
Message :
*Required fields
SEATTLE, Aug. 24, 2020 /PRNewswire/ -- RealNetworks, Inc. (Nasdaq: RNWK) today announced its support for the acquisition of Rhapsody International, Inc., which does business as Napster, by MelodyVR Group PLC. RealNetworks is the majority owner of Napster, with an approximate 84% stake. MelodyVR Group PLC, the leading creator of live virtual reality music experiences, intends to combine its MelodyVR subsidiary with Napster to create a new differentiated entity. The acquisition is expected to close in the fourth quarter of 2020. "Rhapsody and Napster have travelled a long and winding road," said Rob Glaser, Chairman and CEO of RealNetworks and Chairman of Napster. "We first became involved with Rhapsody when we acquired Listen.com in 2003, and then Rhapsody acquired Napster in 2011. We are proud of our stewardship of this pioneering business and iconic brand, and grateful for the hard work by the entire Napster team to keep the torch alive all of these years. We're delighted to pass the baton to Anthony Matchett and the innovative team at MelodyVR. We'll continue to root for Napster and are pleased that we'll be ongoing stakeholders in MelodyVR's success." "Going forward, Real will continue to focus the operations of Real on our primary growth initiatives, such as our SAFR computer vision platform and our GameHouse free-to-play casual games business," Glaser continued. "We will also continue to nurture innovation, for example our Scener watch party service and platform." Rhapsody was the first on-demand streaming music service to offer monthly subscribers unlimited access to a massive library of digital music. It was also the first music service to provide content from the top five major record labels of the time. RealNetworks acquired the Rhapsody service in August of 2003. In 2010 Rhapsody began operating as an independent entity, rebranding itself in 2016 as Napster, followed by a pivot to the "Powered by Napster" B2B strategy, which focused on selling the Napster music Platform-as-a-Service. The Napster platform began 2020 with over 3 million users on four continents, delivering more than 90 million licensed tracks to consumers and the many B2B and Platform-as-a-Service partners. It served 10.8 billion streams in 2019 with revenues of $113 million. The price of the acquisition is approximately $70M, comprising $15M in cash, $11M in MelodyVR stock, and assumption by MelodyVR of approximately $44M in payment obligations, primarily to various music industry entities. Consideration payable to RealNetworks is subject to a $3M escrow and certain further indemnity claims, as well as contingent consideration obligations associated with its acquisition of Columbus Nova's 42% stake in Napster in January of 2019. Real intends to provide additional details regarding the expected economic benefits to Real of this transaction at its Q3 earnings call in early November, or sooner if the MelodyVR transaction closes before then. About RealNetworks
Building on a legacy of digital media expertise and innovation, RealNetworks has created a new generation of products that employ best-in-class artificial intelligence and machine learning to enhance and secure our daily lives. SAFR ( www.safr.com ) is the world's premier facial recognition platform for live video. Leading in real-world performance and accuracy as evidenced in testing by NIST, SAFR enables new applications for security, convenience, and analytics. For information about our other products, visit  www.realnetworks.com . RealNetworks is a registered trademark of RealNetworks, Inc. All other trademarks, names of actual companies and products mentioned herein are the property of their respective owners. For More Information:

RealNetworks : Announces Support for Acquisition of Rhapsody International, Inc. by MelodyVR Group PLC

It's a reverse takeover that will see Rhapsody's music library merge with MelodyVR's virtual reality content
MelodyVR Group PLC ( LON:MVR ) gave the market a 90s flashback with news that it is to acquire Napster, the music streaming service. MelodyVR, a creator of virtual reality content, has entered into a merger agreement with Rhapsody International, which trades as Napster. The merger will be classed as a reverse takeover according to AIM’s rules and is subject to the approval of MelodyVR’s shareholders. The plan is for MelodyVR to pay roughly US$26.3mln to Napster’s owners, of which US$15mln will be in cash with the rest satisfied in shares. The AIM-listed company, which operates the MelodyVR platform, believes that the addition of Napster's music library, comprising more than 80mln music tracks, to its own platform of virtual reality music performances and live-streamed events will provide a “compelling and differentiated offering” to music fans around the world. Napster, although it made its name as a peer-to-peer (music) file sharing service of dubious legality has gone legit and is now an established music streaming business with corporate and consumer subscribers across Europe, North America, Latin America and the Asia Pacific region. "MelodyVR's acquisition of Napster will result in the development of the first-ever music entertainment platform which combines immersive visual content and music streaming,” declared Antony Matchett, the chief executive officer of MelodyVR in a statement. “Our purchase of Napster, one of the music industry's original disruptors, is born out of our wish to deliver the world's foremost music experience, available seamlessly across audio and visual media and in turn presenting a truly next-generation music service," he added. Trading in the shares in MelodyVR has been suspended while the company sorts out the fine details of the reverse takeover. Quick facts: MelodyVR Holdings PLC
Price: 4.3 GBX

MelodyVR acquires Napster in merger with Rhapsody International

Emeli Sande at the Rivoli Ballroom for MelodyVR (    PR supplied    )
A British tech start-up today made a surprise $70 million swoop for the music streaming platform which turned the industry on its head, Napster. London-listed VR specialist MelodyVR is to take over Rhapsody International, which trades as Napster and is currently owned by Nasdaq-listed RealNetworks. Napster made its name as an illegal music downloading platform after its launch in 1999 but has since moved to a model offering licensed tracks to both consumers and other businesses. MelodyVR specialises in filming and streaming gigs on virtual reality headsets, with users paying via its app. The company plans to bring Napster’s catalogue of 90 million tracks on to its app to become a one-stop-shop for superfans of artists. Initially the pair will continue to operate as independent businesses. MelodyVR’s shares saw a surge when lockdown began and consumers’ thirst for at-home entertainment stepped up. Today they sit at 4.4p, valuing the company, which hosts gigs from the likes of Emeli Sande and Liam Payne, around £76 million. It has capitalised on the absence of live music by streaming a host of concerts from Los Angeles, including shows from Cypress Hill, Khalid and John Legend. Last year Napster notched up 10.8 billion streams and revenues of $113 million in 2019. MelodyVR chief executive Anthony Matchett said: “MelodyVR’s acquisition of Napster will result in the development of the first ever music entertainment platform which combines immersive visual content and music streaming. “For music fans today, live and recorded music are intrinsically linked. We are as keen to see our favourite artists perform live as we are to listen to their albums. Our purchase of Napster, one of the music industry’s original disruptors, is born out of our wish to deliver the world’s foremost music experience, available seamlessly across audio and visual media and in turn presenting a truly next generation music service.”

MelodyVR snaps up &apos;original music industry disruptor&apos; Napster for $70m

Funding Date

Pre-Money Valuation

Post-Money Valuation

Amount Raised

Shares Authorized

Issuance Price

Dividend Rate

Liquidation Preferences

Liquidation Price

Participation

Conversion Price

Anti Dilution

General Voting

Board Voting

Par Value

Acquired - II

Napster offers interactive music experiences, creating ways to discover, share, acquire and enjoy music anytime, anywhere.

Name	Title	Status
Bill Patrizio	Chief Executive Officer, President	Current
Randy Haas	Chief Financial Officer	Current
Angel Gambino	Executive Vice President	Current
Brian Ringer	Executive Vice President	Current
Ken Murphy	Senior Vice President	Current

Name	Bill Patrizio	Randy Haas	Angel Gambino	Brian Ringer	Ken Murphy
Work History
Title	Chief Executive Officer, President	Chief Financial Officer	Executive Vice President	Executive Vice President	Senior Vice President
Status	Current	Current	Current	Current	Current

Wells Fargo Success Story

3M Success Story

Platform Overview

Napster (acquired by Rhapsody International)

Executives

Napster (acquired by Rhapsody International) Management Team

10 Team Members

Discover the right solution for your team