A music-streaming platform, whose investors include U2’s bassist Adam Clayton and financier Guy Hands, is nearing a viable restructuring that will enable it to introduce a range of new interactive television channels in the United States.
Sky News has discovered that the assets of MagicWorks, operating under the name ROXi, are set to be transferred to a newly established entity called FastStream Interactive, supported by several American broadcasting networks.
The agreement, which may be finalized as early as next week, is anticipated to generate approximately £5 million in new equity from both new and existing stakeholders.
Insiders revealed that this capital would be utilized to launch traditional broadcast channels that would allow viewers to skip over content that does not pique their interest.
FastStream’s own interactive television music video channel is reportedly on track to debut next month, according to sources.
Additional supporters of the company include multiple US-based broadcasting networks, believed to encompass Sinclair, along with various media industry leaders such as former ITV executive Rupert Howell.
One insider mentioned that the restructuring and asset divestiture will ensure full repayment to ROXi’s creditors.
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Simon Cowell, Kylie Minogue, and Robbie Williams were among the notable music industry personalities previously identified as ROXi investors.
Begbies Traynor Group, a professional services firm, and Rockefeller Capital Management have been providing guidance throughout this process.
One source indicated that the completion is expected to occur on or around December 12.
Established in 2014, ROXi claimed to be the world’s first “made-for-television” service, enabling viewers to stream millions of songs and download hundreds of thousands of karaoke tracks.
The company’s quest for funding from the US was deemed critical for the expansion of its FastScreen technology.
According to one source, the new offerings are projected to be unveiled at the Consumer Electronics Show (CES) in Las Vegas in early January.
The company’s spokesperson opted not to provide any comments.
