A music video-streaming service whose shareholders include the U2 bassist Adam Clayton will this week announce that it has sealed a management buyout after months of talks.
Sky News understands that the assets of MagicWorks, which trades as ROXi, have been sold to a new company called FastStream Interactive (FSI), with backing from two major US-based broadcasters.
Sources said that Nasdaq-listed Sinclair and New York Stock Exchange-listed Gray Media were among the new shareholders in FSI, with the launch of new interactive TV Channels in the US expected to take place shortly.
The deal, which has involved raising millions of pounds of new equity from new and existing investors, has resulted in previous creditors of the business being repaid in full, according to the sources.
Its search for funding from the US was seen as vital because of the programme to roll out its FastScreen technology.
Founded in 2014, ROXi described itself as the world’s first ‘made-for-television’ service, allowing viewers to stream millions of songs and download hundreds of thousands of karaoke tracks.
Its broadcast channels allow viewers to skip through content in which they have no interest.
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Simon Cowell, Kylie Minogue and Robbie Williams were among the prominent music industry figures who had previously been named as ROXi investors.
Financiers including Guy Hands and Jim Mellon are said to be part of the new ownership structure.
In response to an enquiry from Sky News, Rob Lewis, FSI chief executive, said: “The new technology, FastStream, will revolutionise broadcast TV.
“For the first time in history, consumers tuning into a normal TV channel will find they automatically start at the beginning of the programme, and that they are able to skip, pause or search, even though they are watching normal broadcast TV”.
Begbies Traynor Group, the professional services firm, and Rockefeller Capital Management advised on the process.
