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Business News Digital MegaUpload Timeline
Baboom cuts ties with Kim Dotcom
By Andy Malt | Published on Thursday 2 October 2014
Kim Dotcom has sold his 45% stake in Baboom, cutting all ties with the company he set up in the wake of the MegaUpload takedown.
As previously reported, Dotcom announced his direct-to-fan music service, originally called Megabox, not long after US authorities took his file-transfer service offline in January 2012. After numerous delays, and the name change to Baboom, the service was demoed in January this year with Dotcom’s own album, ‘Good Times’.
However, since then, despite suggestions of a stock market floatation and the hiring of former Sony man Tony Smith as CFO, word on the full launch has not been forthcoming. Earlier this year, CMU was told that it was hoped that the launch would come in Q4 this year. And, as I’m sure you’re all aware, we entered Q4 yesterday.
What Dotcom’s departure from the company means for that elusive launch date is unclear, but in a tweet this morning he was clear that he didn’t feel like he was helping, saying: “Goodbye Baboom. I was holding you back. The music industry hates me. You’ll do better without me. Good luck, my love”.
Indeed, trying to get the music industry to sign up to a service co-owned by Kim Dotcom was always going to be a hard sell, though the company seemed confident that the quality of its product could overcome this. Possibly it could not.
Confirming Dotcom’s exit this morning, Baboom CEO Grant Edmundson told Stuff: “The transaction means Dotcom no longer has any equity or role in Baboom, nor any relationship with the company. Kim is moving on to focus on other projects and both camps wish each other well with future plans”.
Last year Dotcom also stepped down as a director of new file storage service Mega, and after failing to gain many votes for his political party in the recent New Zealand general election he admitted that his ‘personal brand’ was “poisoned”. In leaving Baboom, he seems to concede that – at least at the moment – his involvement in new projects puts them at a severe disadvantage. Which is a bit of a problem for someone whose job is launching new projects.
