Baboom founder Kim Dotcom confirmed today that he has parted ways with the music startup. Stating reasons tied to his reputation with the music industry, Dotcom sold his stake in the company that he launched at the start of the year. Dotcom had vacated his position at Mega, a cloud storage company he created after the legal trouble involving his previous venture Megaupload, to focus on the music service.
Dotcom owned a 45-percent stake in the company through his family’s trust, but the trust has since sold the stake to VIG Limited. As a result of the transaction, VIG now owns 90 percent of the company. The remaining ten percent is owned by Xavier Buck of Dice Invest, S.A. according to filings uncovered by TorrentFreak. Buck mentioned that he would be leading Mega’s Europe division back in November 2013.
When Baboom went live in January, it soft-launched with the release of Dotcom’s Good Times album. The release coincided with the two-year anniversary of the raid on his New Zealand home, the circumstances of which are largely the basis for his current run of legal troubles. Baboom’s intent was to bring artists and fans closer together. Artists were set to receive more profits, while fans could stream their music for free through Baboom’s ad-supported service. It’s unknown if Baboom will continue to carry Dotcom’s album.
Chief Executive Grant Edmundson makes a clear cut in his statement to Stuff New Zealand, plainly stating that “Dotcom no longer has any equity or role in Baboom, nor any relationship with the company.” Edmundson added that he wishes the founder well as he focuses on other projects. Dotcom confirmed his exit over Twitter.
Good bye @Baboom. I was holding u back. The music industry hates me. You'll do better without me. Good luck my love. http://t.co/eByCsUizmR
— Kim Dotcom (@KimDotcom) October 2, 2014
