The end of another web music service that was doomed from the get-go. The only surprise here was how much money the company was able to raise and incinerate in the process.
… quietly hit the deadpool yesterday after 5 years of existence.
A source told
the service went under at about 4 p.m. PDT, and has been down ever since. The publication has been unable to reach anyone at SpiralFrog for comment, as have we, but claims the source said the startup issued secured notes in order to borrow at least $9 million from hedge funds and others last year to stay in business. Alas, it seems like all efforts to keep the company afloat have been in vain, causing another ad-supported free music download service to cease operations (recently a similar music service geared towards college students, Ruckus, pulled the plug).
Having raised as much as
in VC and debt funding, the company made a splash in August 2006 (after 2 years in operations) when Universal Music made their entire music catalogue available for free download through SpiralFrog, joined by EMI a month after.
Update: Sources tell MediaMemo that SpiralFrog is “indeed dead and that any remaining assets are being handed over to creditors.”
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