How Beyond Oblivion CEO Adam Kidron Blew $33 Million Without Shipping A Product
Beyond Oblivion was supposed to be one of the best up and coming music startups. The idea behind Beyond Oblivion was for unlimited songs to be bundled with new phones. Consumers would never have to pay for the songs. The problem with Beyond Oblivion was that they spent so much money and never delivered a single product.
When Beyond Oblivion filed for bankruptcy, they took $33 million worth of investor money with them. Former Beyond Oblivion employee Van Buskirk said that “The CEO (Adam Kidron) was insane, and that’s why the business failed.”
Kidron reportedly paid consultants $500,000 to come up with a name. The consultants came up with BOINC. Every partner they spoke to hated the name. Kidron was supposedly in love with that name and thought that having scantily-clad women wearing swag that said “Wanna Boinc?” would be a great idea.
Kidron also spent more than $25,000 per month on travel. He traveled to try and get licensing and hardware deals set up. The company also paid about 5 to 10 experts $10,000 per month for advice.
Kidron also allegedly hired a Steve Jobs impersonator to interrupt meetings between Beyond Oblivion and partners at the 2011 CES show. Kidron also spent money hiring a famous comic book illustrator to create a graphic novel and video about the future of music, which featured a young character standing on a pile of MP3 players.
The worst part of it all is that Kidron is still rumored to be paying himself a salary of $325,000 per year to see if he can figure out how to get Beyond Oblivion back off the ground. Doesn’t exactly sound like a startup to me. Startups pride themselves on their ability to bootstrap and create something great rather than taking investor money and not shipping anything.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry