Australian music streaming firm Guvera shuts down ops, co-founder exits

Guvera's launch in Russia in November 2014. Visual from Guvera Global's Facebook page.

Australian streaming music firm Guvera ― which raised an aggregate venture financing to the tune of $185 million to date ― on Friday shut down its operations.

Guvera’s co-founder Claes Loberg made an exit on Friday as a director, followed by major financial backer Steve Proch who also left the board. This leaves the other co-founder Darren Herft on a solo flight, reports said.

This comes a year after Australian Stock Exchange (ASX) rejected the Queensland-based streaming music company’s bid to raise $100 million via a float on the local bourse, in a deal that would have valued Guvera at $1.3 billion, the Financial Review observed.

From the funding, it is reported that Guvera used about $50 million on music labels and rights, along with funding product development. It acquired Tesco’s Blinkbox Music in January 2015.

Guvera also paid over $22 million in commissions to AMMA Private Equity run by Herft.

Founded in 2008, Guvera provided consumers with unlimited access to local and international music in a way that supports the artists and record labels responsible for producing it. Like other streaming services, Guvera operates both an ad-support free and premium, paid tiers.

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