May 19, 2008, 12:00 AM

Steinway buys online music retailer ArkivMusic

Steinway Musical Instruments Inc. has purchased online music recording retailer ArkivMusic LLC for $4.5 million. Steinway will pay the e-retailer $3 million at closing plus annual payments of $500,000 over the next three years.

Instrument manufacturer Steinway Musical Instruments Inc. has purchased online classical music recording retailer ArkivMusic LLC for $4.5 million. Steinway will pay the e-retailer $3 million at closing and three annual payments of $500,000. Steinway says the purchase price involves “additional potential consideration” based on ArkivMusic`s financial results in the next three years.

“We share a passion for supporting outstanding music and musicians, and ArkivMusic is one of the shining lights in the classical music business these days,” says Dana Messina CEO of Steinway. “This acquisition will help Steinway promote thousands of musicians that use our instruments around the globe."

ArkivMusic, launched in 2002, sells over 90,000 music recordings from 1,500 labels and operates 20 distribution centers. Steinway says ArkivMusic’s annual revenue grew more than 30% last year, with 2007 sales of just over $8 million. ArkivMusic will operate as an as an independent subsidiary of Steinway.

“We believe the reach and resources of Steinway can help us achieve our global growth strategy,” says ArkivMusic`s president Eric Feidner. “It is a privilege to become part of the fine tradition and values that Steinway represents to musicians and music fans worldwide. We believe our growing business and extensive relationships with customers, record labels and radio will add considerable value to a dynamic brand in classical music."

comments powered by Disqus

Advertisement

Advertisement

Advertisement

From The IR Blog

FPO

Paul Dobbins / E-Commerce

6 tips for maintaining sales during the post-holiday lull

Use that stellar email list you built during the holidays to market new products or ...

FPO

Jeff Sass / E-Commerce

How brands use domains beyond dot-com to attract shoppers

Amazon, for example, posts holiday ads to amazon.blackfriday.

Advertisement