Kim Dotcom and music service Baboom break their ties

The streaming music service Baboom has announced that it has severed all ties with founder Kim Dotcom. Dotcom said in a statement that its difficult relationship with the music industry would stand in the way of Baboom’s further development.

Millionaire Kim Dotcom owned a 45 percent stake in Baboom, but he sold all shares in the start-up. According to Baboom CEO Grant Edmundson, at some point every company comes to a point where it needs to take a “new direction” and change its staff. Baboom has reached that point, according to Edmunson, writes The Guardian. Dotcom would now like to turn its focus to other projects.

Dotcom previously founded the cyberlocker services Megaupload and Mega. In a tweet he let it be known that he sold his interest in Baboom mainly because the music industry, with which he has been at odds for years, would ‘hate’ him. This would hinder the further development of the streaming music service.

Baboom opened its doors at the beginning of this year with a single album: Good Times by Kim Dotcom himself. The streaming music service has since tried to entice artists and record labels to open a profile page on the website and to stream or offer music from there for download. By cutting ties with Dotcom, Baboom hopes to improve his negotiating position vis-à-vis the music industry, although the company would initially focus mainly on indie labels. According to current plans, the streaming music service should be fully operational by the end of this year or in the first quarter of next year. It is unclear whether the previously suggested plans for an IPO will continue.