In the wake of PledgeMusic falling behind in paying artists over the past few months, the direct-to-fan platform issued a statement Friday confirming rumors that it is seeking a partner or a buyer to help it return to financial health. In the past two weeks the company has faced an online uproar from many musicians and their representatives over late payments and last week the company acknowledged the lateness of the payments — it made a similar comment when Variety first reported on the company’s struggles last June — saying, “It is our expectation that payments will be brought current within the next 90 days.” (Read their full statement here.)
The company also announced that cofounder Benji Rogers has returned temporarily as an unpaid advisor, and that it is appointing a third party to “manage all artist funds going forward.”
The statement follows in full below.
To the PledgeMusic community,
The situation that PledgeMusic has found itself in is unacceptable and to all of the artists, managers, labels and fans who have put their trust in us, we are deeply sorry.
All of us at the company are working around the clock to address everybody’s concerns and are hopeful of reaching a positive resolution soon.
To you artists especially, we understand that every last penny is vital to your project’s successful delivery and as such we wanted to share with you some of the concrete action that we have undertaken to date:
Firstly, PledgeMusic is a unique platform with millions of active users and we strongly believe that, notwithstanding our recent problems, PledgeMusic has very significant value.
We are in discussions with several interested parties about a potential partnership with or acquisition of PledgeMusic. These conversations, if successful, would lead to a transaction which would allow us to meet all of our outstanding obligations. As a result, we are hopeful that, as long as the company is given some breathing space to operate, a solution to these current problems will be found.
We cannot reveal further details of these conversations at present as we are bound by commercial sensitivities but as soon as we have any news we will release it.
Secondly, PledgeMusic is in advanced discussions with an independent third-party company to manage all artist funds going forward.
Finally, as previously announced, co-founder Benji Rogers has returned to the company as a volunteer strategic advisor and observer to the board of directors. Benji will assist and advise the new management and finance team on the inherited and existing issues, as well as with the forward planning for the company. His statement is here.
Benji remains as full time Chief Strategy Officer of DotBlockchain Media.
In closing, the board and management team’s priority remains settling any and all back payments that are owed.
We ask for patience. We know that for a lot of you this must be wearing very thin, but we can only reiterate that we are fully focused on making this situation right.
Sincerely and with thanks,
The PledgeMusic Board and Management.