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Bankrupt Digital Music Provider DMX Music Sold to THP Capstar

Authored by Mark Hefflinger on February 14, 2005 - 10:44am.
Los Angeles -- DMX Music, a unit of Liberty Media that provides digital music and video to digital cable, satellite and other services, announced on Monday that it has filed for bankruptcy protection, and will be acquired by private investment firm THP Capstar for an undisclosed sum. Los Angeles-based DMX, which also secured $10 million in debtor-in-possession financing, said it would entertain better offers and expects a sale of the company to be completed within three months. "Completing the sale through a Chapter 11 filing will allow us to significantly reduce our debt and undertake an orderly transition to our new owners," said DMX Music president and CEO Mark D. Rozells. "Under THP Capstar's ownership, the business will be able to capitalize on its leading market position, proprietary technology and significant operational improvements made since 2002, while having greater access to financial resources necessary to support our future growth." DMX Music provides commercial-free digital music channels to cable and satellite TV firms, as well as to many retail stores, and to airlines for in-flight entertainment.
tags: Bankrupt | Digital Music | DMX | THP | Capstar |