The Orchard To Merge With Digital Music Group
According to reports, The Orchard will merge with Digital Music Group. The Orchard is a well-known digital music company that caters to independent labels who want to distribute their music to online stores such as iTunes. Digital Music Group does much of the same, but also has a foothold in the online video business as well. The combined company will trade publicly under the Digital Music Groupâ€™s Nasdaq listing. However, it will be run by the Orchard and drop the Digital Music Group name. The deal does not involve any cash transfers, and the Orchard will carry a 60 percent interest going forward.
Dimensional Associates, the private equity arm of JDS Capital Management, owns The Orchard. “This company has been uniquely designed entirely around the exploitation of digital music rights,” explained Greg Scholl, President and CEO of the Orchard. “We’ll have more songs for sale so we’ll be a bigger partner for the retailers we supply and we’ll have more leverage in the market.” Scholl will remain at the helm of the combined entity. Nothing has been mentioned about Digital Music Group’s officers.