Rupert Murdoch Digital Music Declares Bankruptcy

Rupert Murdoch Digital Music Declares Bankruptcy

Rupert Murdoch digital music company Beyond Oblivion declared bankruptcy after a failed attempt and cost his creditors between 100 and 500 million dollars.

The total assets of Oblivion were only 10 million dollars and the company filed Chapter 11 in a New York Courtroom today.

Oblivion was created in 2008 by a UK music producer Adam Kidron and had raised over 90 million by way of venture funding since 2010.

The Oblivion Breakdown:

News Corp invested 9.2 million for a 23% share in the company according to court documents and  Allen & Co investment bank  under Director Stanley Shuman had an 18% share. News Corp and Allen & Co represented a 34% share of Oblivion.

Two major investors were Sony and Warner Music Group that lost 50 million dollars each when they took great risk even though the billionaire Rupert Murdoch was backing Oblivion. Both Sony and Warner were unsecured creditors in the Oblivion investment venture.

Seems like Oblivion- disappeared into Oblivion with all the money.

What was more disturbing is the fact that the company had enormous financial backing before it had established any reputation.

Investment bank Allen & Co and Rupert Murdoch’s News Corp filed for bankruptcy protection after they spent millions for a service that never materialized.

Oblivion was a start up that gave out an unlimited library of digital music using the Oblivion software in devices.

The plan was to sell licenses for tens of millions of dollars but seems to have blown through the money with nothing to show for it.

It is not Rupert Murdoch’s first time at failure in the internet market after purchasing My Space for over half a billion dollars, he later had to sell it for 35 million taking a tremendous hit in the pocket book.

Murdoch said at the time “We screwed up in every way possible, learned lots of valuable expensive lessons”.  Quote The Telegraph UK

Murdoch had better stay with his Fox News Network, Wall Street Journal and TV shows he props rather than any investments in to the internet he obviously doesn’t understand very well.

Oddly, Rupert Murdoch, Sony and Warner all were supporters of the Stop Online Piracy Bill and the Protect IP Bill that were to be passed this week. Both bills would have censored the internet and placed it under government controls mostly under large corporation control.

The bills were struck down by an enormous wave of backlash from internet giants, Google, Facebook, internet providers and the massive public outcry against the two bills.

Source: Yahoo News  (Yahoo News has removed this link to the story: for no reason).

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Rupert Murdoch Digital Music Declares Bankruptcy

Rupert Murdoch Digital Music Declares Bankruptcy