Online sales climbed 24% year over year, while Best Buy’s overall sales were flat.
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."