Launch Media Says It Secured $2-Million Loan
Launch Media Inc. of Santa Monica, a leading personalized online radio service, announced that an undisclosed “major media company” has provided a $2-million, short-term loan.
That’s $3 million less than Launch had expected to obtain in a deal that was supposed to close May 24. That day, however, four of the five major record companies sued Launch for copyright infringement, and the larger loan never materialized.
Launch has suspended its personalized radio services while it negotiates with the labels.
Company executives previously had said $5 million would help the company cover its losses until fall, when it expects to reach the break-even point on operating expenses.
