Beats' 'Daisy' Music Subscription Service Secures $60 Million in Funding
Russian billionaire and Warner Music owner Len Blavatnik leads the investment in the services spearheaded by Jimmy Iovine.
Beats Electronics’ “Daisy” music service has secured $60 million in funding from a consortium led by Access Industries, Len Blavatnik’s investment group, which owns Warner Music Group. Marc Rowan, James Packer and parties affiliated with Lee M. Bass also participated in the funding round, according to a statement released on
Spearheaded by Interscope Geffen A&M chairman and Beats co-founder Jimmy Iovine along with newly hired CEO Ian Rogers and chief creative officer Trent Reznor, Daisy, as the service formerly known as MOG is called internally, also is being spun out into a stand-alone company. It’s slated to launch in late 2013.
Already a leader in the audio playback sector of headphones and speakers, where Beats has quickly become a formidable market force, Iovine’s mission to bring high quality sound to every music-loving ear in America (and eventually the world) comes one step closer with Daisy, which he promises will “re-introduce the same magic into the process of music discovery and consumption.”
Says Blavatnik in announcing Access' participation: “Beats has the vision, the brand, the management team and now the investor group to effectively change the expectations and experiences of a music subscription service.”
Moelis & Company acted as financial advisors, representing the investment parties exclusively.
Meanwhile, it also emerged on Wednesday that Apple top executives met with Iovine to discuss a potential partnership involving the Daisy service.
Apple CEO Tim Cook and Internet products head Eddy Cue held the talks with Iovine during a late February visit to LA, Reuters reported. Cook expressed interest in Daisy's business model and its planned rollout at a time when Apple is believed to be considering a music streaming service to complement its iTunes store, according to the report.
Apple and Beats officials declined to comment.