Rare Medium, New Valley to Invest $10 Million in Atomic Pop

The Rare Medium Group said it will make an equity investment in Internet music company Atomic Pop, in conjunction with New Valley Corp.

The investment round will total approximately $10 million. In addition, Rare Medium Inc. -- the services arm of The Rare Medium Group -- will provide Internet development services to Atomic Pop.

Atomic Pop, founded by Al Teller, the former head of MCA Music Entertainment Group and president of CBS Records, is a new model music company dedicated to leveraging the digital medium to change the way music is acquired, promoted, sold and distributed.

The company has online record deals with artists such as Public Enemy, ICE T and L7.

The Atomic Pop investment is part of The Rare Medium Group's broad digital music strategy that includes investments in ChangeMusic.com.

New Valley is principally engaged in investment banking and brokerage through Ladenburg Thalmann & Co. Inc., in real estate development in Russia through BrookeMil Ltd., and in ownership and management of commercial real estate in the U.S. through its New Valley Realty division.