Localmusic, an online music community serving 14 cities, said it is negotiations with possible buyers and will shut down completely if none is found in the upcoming months.
The company, which is backed by Prescient Capital and individual investors, said it is in negotiations with two possible buyers after having spoken with a total of ten public and private companies. The company said it hopes to finalize the sale of its brand name, assets, and technology by Labor Day.
Localmusic, which earned revenue from an advertising e-commerce model and a marketing division, said the lack of market viability for the online advertising model made it unfeasible to continue operations. Localmusic also said it would have needed to earn $250,000 monthly revenue to continue but didn’t have the capital or time to reach that amount.
According to the company, serious talks about acquiring the company have been going on for about four months. Localmusic, which at its peak had a 50-person staff, no longer has any employees. It received $2.2 million in financing from Prescient Capital and individuals.