A music streaming service, whose shareholders include U2 bassist Adam Clayton and financier Guy Hands, is set to undergo a solvent restructuring that will pave the way for it to launch a series of new interactive TV channels in the UNITED STATES.
Sky News has learned that the assets of MagicWorks, which trades as ROXi, are to be sold to a new company called FastStream Interactive, which will be backed by a number of US broadcasters.
The deal, which could be finalized as early as next week, will see the company raise around £5m of new capital from new and existing investors.
Sources said the funding would be used to facilitate the launch of conventional broadcast channels allowing viewers to skip through content that does not interest them.
FastStream’s interactive music video channel is expected to launch next month, they added.
The company’s other backers include a number of US-based broadcast networks – notably Sinclair – and several media industry executives, such as former ITV executive Rupert Howell.
An insider said the restructuring and sale of assets would fully repay ROXi’s creditors.
Simon Cowell, Kylie Minogue and Robbie Williams were among the prominent music industry figures previously named as ROXi investors.
Begbies Traynor Group, the professional services firm, and Rockefeller Capital Management advised on the process.
One of them said the work should be completed around December 12.
Founded in 2014, ROXi describes itself as the world’s first “made for TV” service, allowing viewers to stream millions of songs and download hundreds of thousands of karaoke tracks.
Its search for funding from the United States was considered vital because of the deployment program for its FastScreen technology.
A source said the new services are expected to be demonstrated at the Consumer Electronics Show (CES) in Las Vegas in early January.
A company spokesperson declined to comment.