MOG shuts down following Beats acquisition
Music streaming service MOG launched around nine years ago and was acquired by Beats Electronics in July 2012 for $14 million. Apple acquired Beats Electronics for $3 billion last week. MOG provided subscribers a pro-rated refund and a 60-day free trial of Beats as it winds down its web streaming player. MOG was founded by Gracenote CEO David Hyman.
MOG raised $24.9 million in funding from several investors, but did not gain as much traction as Pandora and Spotify. MOG reported around 500,000 active users in February 2012. The MOG Music Network advertising platform was sold to Townsend Media. Around the time that the MOG acquisition took place, Beats was a headphone maker that was owned by HTC. Beats bought itself back from HTC and then launched a music streaming service called Beats Music based on MOG’s technology in January 2014.
Hyman filed a $20 million lawsuit against Beats because he claims that he was maliciously kicked out of Beats before he hit his one year anniversary, which would have given him bonus equity in the company. That stake would have generated quite a bit of extra cash for him because of Apple’s acquisition of Beats.