David Hyman, the CEO of subscription service Mog, says the company has not "actively" been shopping itself, contradicting a report on Tuesday by CNET that the company was struggling and has been seeking a buyer.
Speaking to Reuters, Hyman said the company is not yet profitable and is "always engaged in conversations with our shareholders about all possible options."
Acquisitions have been fairly uncommon because subscription services have been few. Rhapsody acquired Napster's U.S. operations from Best Buy in December and expanded into the U.K. and Germany earlier this year with the purchase of Napster International. Rhapsody grabbed subscribers through a 2008 strategic partnership with Yahoo! for which Rhapsody replaced the Yahoo! Music Unlimited subscription service.
Founded in 2005, Mog began as a collection of music blogs called the Mog Music Network that now spans 1,700 sites. Participating sites earn money through Mog's advertising network as well as affiliate fees earned by referring subscriptions to the subscription music service that launched in December 2009. For both ventures the company has raised $24.9 million from Menlo Ventures, Sony Music, Universal Music Group and others, according to deals tracked at CrunchBase.