By Robert Menta- 3/26/01
It looked like curtains not too long ago for the Internet Underground Music Archive (IUMA). Acquired in September of 1999 by EMusic, the oldest Net music site (going back to 1993) watched as EMusic burned through its cash stockpile and then semi-close IUMA to save money, leaving the site up but not updating it.
Friday IUMA was saved when it was bought out by Vitaminic in a deal worth $900,000. Vitaminic will pay $400,000 of that in cash and will issue the remaining $500,000 in stock for the purchase.
"IUMA cannot be stopped. We were here first, and we are going to be here forever," said IUMA founder Jeff Patterson in a company press release titled IUMA WILL NEVER DIE! "When we ran out of cash, the staff volunteered; when the staff became overwhelmed, the artists volunteered. We're supported by a community of 25,000 artists with a voice that grows stronger every day, and we are simply too passionate to let this community die."
Founded two years ago, the European originated Vitaminic now has nine Web sites in Europe and one in the US. With a bit more available cash than comparative US companies, the company has been picking up for relative bargains companies whose assets fit their business plan. IUMA gives Vitaminic access to an additional community of 25,000 artists.
"The passion of the IUMA artist community is rare and Vitaminic is pleased to join forces with IUMA," said Gianluca Dettori, CEO, Vitaminic. "The acquisition will give Vitaminic's artists broad exposure in the United States, give IUMA artists broad exposure across Europe, and provide a more valuable set of services for all."
This week, IUMA is scheduled to begin accepting new artists and open all shut down IUMA services including new submissions, site stats, charts, and all revenue-sharing programs. Over the next few months, Vitaminic will fund IUMA to extend its functionality with e-commerce, subscription, syndication and mobile features.
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