MONTREAL – Stingray Digital Group has abandoned its latest plan to acquire U.S. competitor Music Choice.
The proposed US$120 million takeover deal announced last August was not the first time that Stingray has attempted to buy the New York-based multiplatform video and music network provider. Stingray reportedly entered into discussions with Music Choice in 2013, which later led Music Choice to sue Stingray for patent infringement in June 2016 after claiming that Stingray gained access to confidential information regarding its technology during those failed merger talks. Stingray filed a countersuit against Music Choice in August 2016 and in October 2017, the U.S. Patent and Trademark Office’s Patent Trial and Appeal Board announced it would review Music Choice’s patent infringement claims. To date, no settlement of either lawsuit has been reported.
The news comes a day after Stingray announced a distribution agreement with cable operator Altice USA that will see 50 Stingray Music audio channels plus music videos from its on-demand catalog available to Altice USA’s millions of Optimum and Suddenlink subscribers. The deal also provides Altice USA with rights for other Stingray products, such as linear music video channels, SVoD products, and TV apps.
Stingray president, co-founder and CEO Eric Boyko said that the Altice USA agreement is “an important step” in the company's U.S. expansion plans.
“While we continue to see benefits in a combination of Music Choice with Stingray, we are extremely confident in our strategic direction and are excited by the significant opportunities before us,” said Boyko, in a statement. “Following Stingray’s recently announced distribution agreement with Altice USA, which will bring 50 Stingray Music audio channels and hundreds of music videos from Stingray’s On-Demand catalog to Altice USA’s Optimum and Suddenlink subscribers, Stingray has signalled its commitment to winning the U.S. market. We believe Stingray is well-positioned to continue as the supplier of choice in the United States for curated B2B and direct-to-consumer services.”
