Universal Music Group is now eyeing a possible equity stake in Nimbit, according to paperwork secured this week by Digital Music News.
Nimbit is a platform that allows artists to sell music and related assets – both digital and physical – across the internet.
Documents pertaining to the deal outlined a $3 million investment, and a total company dilution of $15 million. That fits into a number of other tech-related investments triggered by the major label, though the fate of this specific deal remains cloudy. Correspondence between the parties suggest a considerable level of buy-in from upper management, though one well-placed source at Universal expressed serious doubts about the chances of a finished agreement.
Just recently, Universal invested heavily in INgrooves, a digital label and distribution company based in San Francisco. Other investments include Buzznet, a rising, music-focused social network. “Vivendi is putting pressure on Universal to change their business, and so they’re making bets like a VC,” one knowledgeable executive told Digital Music News. “Because what they have is capital, but this is all basically guesswork.”