Ryan Kavanaugh‘s company is in late-stage discussions to sell the music information and download service to an undisclosed buyer for about $1M, I’m told. Relativity Digital is preparing to unload a collection of sites in the deal including artistdirect.com, musicandirect.net, ubl.com, ultimatemusic.com, and playlisted.com. The tiny price suggests how hard it’s been to stand out in a music market dominated by services including Apple’s iTunes, Pandora, and Spotify. Relativity bought ArtistDirect for well under $1M in January 2010, months after the music service delisted its stock. In its last annual report, ArtistDirect said it generated $12.1M in revenues in 2008 — but with nearly $48M in losses.
The sale comes amid other changes at Relativity Digital. On June 13, Randall Cox quietly left as president of the operation. He hasn’t been directly replaced; the unit is being overseen by the company’s new Chief Marketing Officer Angela Courtin. Relativity still intends to expand its presence in digital, a source at the company says. Earlier this year it offered about $1B in its privately held stock for online video power Maker Studios, which accepted a lower cash bid from Disney. It also made a run at multinetwork web video company Fullscreen.
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.