Universal Eyes Nimbit Investment, $3 Million In Negotiation

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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.”