Universal Music Keeps Investing; Uber Stake Surfaces
June 5, 2008 at 5:10 AM (PT)
Major labels are continuing to invest in emerging digital companies, part of a broader diversification strategy, reports DIGITALMUSICNEWS.COM. Over the weekend, sources pointed DIGITAL MUSIC NEWS to a UNIVERSAL MUSIC GROUP stake in UBER.COM, a startup that allows users to instantly create multimedia websites and blogs.
The investment was confirmed TUESDAY by a UMG representative, though specific investment figures were not disclosed. UBER did not respond to an inquiry, and sources were unable to identify the date of the initial investment.
UNIVERSAL MUSIC is now playing venture capitalist, a role that carries tried-and-true rules. Among them is that the executives are more important than the idea, especially in a climate that frequently forces business model overhauls.
UMG is not the only major investing in startups. Just recently, WARNER MUSIC GROUP invested $20 million in LALA.COM, a company that offers ubiquitous access to music collections and is launching a novel, per-stream purchasing proposition.