Idealab! purchases disc-tailer

'Net shop to raise $300 mil in an IPO

HOLLYWOOD — Internet incubator Idealab! has acquired CD e-tailer, the company announced Wednesday. The price was not disclosed. allows users to buy and sell new and used CDs; customers can also gain credit for CDs they trade in. Company, previously based in Chicago, moved into Idealab!’s offices in Pasadena several weeks ago.

“ delivers an innovative and unique consumer experience,” said Bill Gross, founder and chairman of Idealab! “The company’s innovative business model, coupled with the site’s fast-paced buying, trading and selling environment and extensive music search features, provides extensive, real-time options to consumers. is a solid addition to the Idealab! network.” was founded in November 1998 by brothers Andy and Steve Grundy. Andy Grundy will remain with the company as prexy, while Steve will serve as senior veep and chief technical officer. Since teaming up with Idealab!, has grown from eight to 35 employees.

More than coin

“One thing that was very appealing to us was that it’s not just money; Idealab! also gives support,” Andy Grundy said. “With straight venture capital, you hear things like ‘That won’t work because of this.’ With Idealab!, it was, ‘Cool, how can we make this thing go?’ ”

Idealab! has hatched a bevy of e-commerce companies, including eToys and Entertainment site is being developed with the company’s resources. Idealab! recently filed a notification with the Securities and Exchange Commission that it seeks to raise $300 million in an initial public offering. In its most recent round of financing, Idealab! raised $1 billion.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Digital News from Variety