ROXi, a music video streaming service backed by U2 bassist Adam Clayton, has completed a management buyout with new capital from American broadcasters Sinclair and Gray Media.
That’s according to Sky News, which reported on Sunday (May 18), citing sources, that the assets of MagicWorks, ROXi‘s parent company, transferred to a newly formed entity called FastStream Interactive (FSI) following months of negotiations.
Financial terms of the transaction were not reported.
U2 bassist Adam Clayton, a previous shareholder in the streaming platform, will reportedly maintain his investment position in the restructured company.
“The new technology, FastStream, will revolutionize broadcast TV.”
Rob Lewis, FastStream Interactive
Nasdaq-listed Sinclair Broadcasting Group and NYSE-traded Gray Television provided backing for the transaction, which raised “millions of pounds” from both new and existing investors, according to the report. The structure of the deal ensured repayment to previous creditors, according to Sky.
Following the transaction, the buyers plan to launch new interactive TV channels in the US market soon, according to the report.
Rob Lewis, FSI chief executive, told Sky News: “The new technology, FastStream, will revolutionize broadcast TV. For the first time in history, consumers tuning into a normal TV channel will find they automatically start at the beginning of the program, and that they are able to skip, pause or search, even though they are watching normal broadcast TV.”
Founded in 2014, ROXi describes itself as “the free music app for your TV.” In 2023, Roxi attracted £7 million ($9.4 million) in funding from existing investor comedian Alexander Armstrong, Clayton and U2 ex-manager Paul McGuinness, The Daily Mail reported at the time.
Additionally, several prominent entertainment industry figures previously invested in ROXi, including music producer Simon Cowell and recording artists Kylie Minogue and Robbie Williams.
Sky News reported that financial sector veterans Guy Hands (a former Chairman of EMI) and Jim Mellon joined the company’s new ownership structure. Begbies Traynor Group and Rockefeller Capital Management provided advisory services throughout the buyout process, the report added.
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