A group led by billionaire Len Blavatnik is investing $60 million (£40 million) in Daisy, a forthcoming subscription-based music streaming service announced earlier in the year by Beats Electronics LLC.
Beats, a leading manufacturer of headphones and speakers, announced in a statement that Daisy is scheduled to go live in late 2013, adding that the service will be spun out as a separate entity. Meanwhile, digital music service MOG, which was acquired by Beats last year as a part of Project Daisy, will also go along with it in the spin out.
Apart from Blavatnik's Access Industries, the group of investors includes Australian businessman James Packer, affiliates of Lee M. Bass and Apollo Global Management LLC's Marc Rowan.
"Beats has the vision, the brand, the management team and now the investor group to effectively change the expectations and experiences of a music subscription service," Blavatnik said in a statement.
With already established music streaming services such as Spotify, Rdio and Pandora around, and Google also reportedly planning on its own entry into the ring, this new investment round could be of immense help for Daisy to gain a foothold in the industry.