Herft, Loberg and Brad Christiansen founded Guvera in 2008 and launched two years later as an MP3 site, later evolving into a traditional streaming service with both ad-based and premium tiers. Licensing agreements with all the major labels in hand, Guvera expanded beyond Australia into India, Indonesia, Hong Kong, Malaysia, the Philippines, Russia, Mexico, Singapore and the United States, among other territories.
But problems have mounted over the past two years. According to a prospectus published in June, the company lost $81 million last year and expects losses of $55.7 million in fiscal year 2016. The company’s $80 million IPO was rejected by the Australian Securities Exchange in June and it has since placed two of its subsidiaries, Guvera Australia and Guv Services, both of which focus on international markets, under administration.
Guvera Sets Meeting With ASX After Blocked IPO
After its IPO plan fell apart, Guvera announced that it would be trimming the amount of markets where it operates to five: Australia, India, Indonesia, Saudi Arabia and United Arab Emirates. "After conducting a strategic evaluation of our business, we have decided that in order to achieve sustainable and long-term goals, we will focus our efforts in key countries where we feel we can return the greatest value to our shareholders," the company writes in a message announcing the closure to U.S. users.