A music-streaming platform with stakeholders like Simon Cowell, Kylie Minogue, and Robbie Williams is urgently seeking to secure millions of pounds in funding within a short span of time.
Sky News has been informed that ROXi has engaged the services of Begbies Traynor Group, a professional services company, to collaborate with Rockefeller Capital Management in the quest for fresh funding.
Established in 2014, ROXi positioned itself as the pioneer of a television-centric service, enabling users to stream millions of songs and download hundreds of karaoke tracks.
It has managed to attract a notable array of investors, including Alesha Dixon and U2 bassist Adam Clayton.
Additionally, three of the major record labels globally – Sony Music, Universal Music Group, and Warner Music – are also part of ROXi’s investor base.
Prominent personalities from the corporate sector such as former Saracens owner Nigel Wray, ex-McLaren chief Sir Ron Dennis, and private equity magnate Guy Hands have been endorsing the company for a considerable period.
Thus far, ROXi, with a distribution agreement in the UK with Sky, the parent company of Sky News, has secured £40m from its cohort of investors.
Simon Cowell Credit: Faye’s Vision/Cover Images (Cover Images via AP I
The company has hinted on multiple occasions at its aspiration for a stock market listing in the long run.
Reports suggest that discussions have been ongoing for months with a US-based broadcaster – potentially Sinclair – and an American media entity regarding the sale of an ownership share, although no agreement has been finalized yet.
Earlier this year, ROXi unveiled a collaboration with Sinclair to introduce a trio of interactive music channels on compatible devices.
“Our alliance with Sinclair will redefine the concept of broadcast television for numerous households in the US,” remarked ROXi CEO Rob Lewis in January.
“Viewers will have immediate access to TV music channels with the interactivity and features of a music application, without the need to download or launch an app.”
In recent times, Begbies Traynor is said to have been reaching out to potential investors, with a deadline set for early next month to attract fresh capital.
A source close to the company emphasized the importance of securing funding from the US to enable the rollout of FastScreen technology, allowing audiences to experience traditional linear TV channels akin to modern streaming services.
As of this weekend, it remained uncertain whether equity investment from Sinclair or another American broadcaster would progress, and under what conditions.
In response to Sky News’ inquiry, a spokesperson for ROXi stated: “To facilitate an entry into the US broadcast market in 2024, the board is pursuing various active funding solutions, including proposals for funding from existing major shareholders, management, and several US broadcasters, and is optimistic about announcing positive news soon.”
Mr. Lewis has clarified that ROXi is not intending to compete with music-streaming apps like Apple Music or Spotify but aims to offer customers the opportunity to relish visual music experiences on their largest screen at home – the living room TV.
“ROXi boasts an exceptional lineup of investors in the music industry – it is poised for success,” remarked one investor over the weekend.
An insider added that a successful funding endeavor is expected to result in the appointment of a new chairman to take over from Rupert Howell, the ex-ITV executive who recently vacated the role.
The company’s next steps if the funding search does not conclude positively in the approaching weeks remain unclear.
According to the company’s spokesperson, financial results for the previous year are not yet public.
