Liberty Digital Inc.announced Monday that its subsidiary DMX MUSIC, Inc. and AEI Music Network Inc. (AEI) will merge to create an international, multi-media, e-business, music entertainment company.
Combining the assets of both companies, the new entity will deliver channels of commercial-free music via the Internet, satellite, and broadband networks.
Under the merger agreement Liberty Digital will own a majority of the newly formed company, with AEI Music shareholders holding the rest of the company.
A new Board of Directors will be established, consisting of 3 directors appointed by DMX MUSIC and 2 directors appointed by AEI Music. DMX MUSIC and AEI Music management teams will be combined to run the new company. Michael J. Malone, Chairman and CEO of AEI Music, will become Chairman of the Board and Lon Troxel, President and CEO of DMX MUSIC, will become President and Chief Operating Officer of the new entity. A CEO of the new company will be named at a later date.
“This merger will create a new, dynamic and growth-oriented company strategically positioned to deliver music programming to homes and businesses around the world,” stated Lee Masters, President & CEO of Liberty Digital. “The combination of Michael Malone, an icon in the business music industry, and his global vision with DMX MUSIC’s pioneering digital and Internet technologies will establish a company primed for significant market impact.”
“29 years ago AEI Music started an industry, not just a company. The merging of DMX MUSIC and AEI Music is just as exciting,” states Michael J. Malone. “The opportunities in technology and the use and enjoyment of music are greater today than they have ever been in our history. The natural fit of the two companies’ cultures, distribution resources and developed technologies make this a natural merging of interests. Our mutual customers, future customers and employees should all benefit from this effort. I could not be more pleased.”