A music streaming service whose shareholders include Simon Cowell, Kylie Minogue and Robbie Williams is racing to raise millions of pounds within weeks.
Sky News has learned that ROXi has appointed Begbies Traynor Group, the professional services firm, to work alongside Rockefeller Capital Management in the search for new capital.
Founded in 2014, ROXi describes itself as the world’s first “made for television” service, allowing viewers to stream millions of songs and download hundreds of thousands of karaoke tracks.
He has attracted a star-studded list of investors, which also includes Alesha Dixon and U2 bassist Adam Clayton.
Three of the world’s biggest record labels – Sony Music, Universal Music Group and Warner Music – are also among ROXi’s shareholders.
Prominent figures from the business world, including former Saracens owner Nigel Wray, former McLaren boss Sir Ron Dennis and private equity tycoon Guy Hands, have supported the company for some time.
In total, ROXi, which has a UK distribution deal with Sky News’ immediate parent company Sky, has raised £40m from its roster of investors.
It has repeatedly suggested that a stock market flotation is its long-term ambition.
It is said to have been in prolonged discussions for months with a US-based broadcaster – believed to be Sinclair – and an American media company, about selling an equity stake, although a deal has not yet been signed.
Earlier this year, ROXi announced a partnership with Sinclair to launch a trio of interactive music channels on compatible devices.
“Our partnership with Sinclair will revolutionize what broadcast TV means for millions of U.S. homes,” ROXi Chief Executive Rob Lewis said in January.
“Viewers will have instant access to TV music channels that feature the interactivity and features of a music app, without having to download or launch an app.”
In recent weeks, Begbies Traynor has reportedly approached potential investors, with a deadline for attracting new funding reportedly set for early next month.
A person close to the company said securing US capital was vital because it needed to implement FastScreen technology, allowing audiences to watch traditional linear TV channels in the same way they access modern streaming services.
This weekend, it was unclear whether an equity investment from Sinclair or another American broadcaster would proceed or on what terms.
In response to a query from Sky News, a spokesperson for ROXi said: “To enable a launch into the US broadcasting market in 2024, the board is progressing a number of active financing solutions, including funding proposals from existing major shareholders. , management and a number of US broadcasters and we are confident of making a positive announcement soon.”
Lewis said ROXi is not positioned as a rival to music streaming apps like Apple Music or Spotify, but as a way for customers to enjoy visual music experiences on the biggest screen in the house – the living room TV.
“ROXi has one of the most stellar investor rosters of any company in the music industry – it deserves to succeed,” said one investor this weekend.
A source added that a successful outcome in its search for new capital was expected to trigger the appointment of a new chairman to replace Rupert Howell, the former ITV executive who recently stepped down.
It was unclear what ROXi’s next steps would be if its search for financing was not successfully completed in the coming weeks.
Last year’s financial results are not yet available, according to the company spokesperson.
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