PledgeMusic Asks for 'Breathing Space' As It Explores Partnerships & Acquisitions Amid Payment Scandal

"We ask for patience. We know that for a lot of you this must be wearing very thin, but we can only reiterate that we are fully focused on making this situation right."

Crowdfunding and preorder platform PledgeMusic issued a statement on Friday (Feb. 1), asking for "breathing space" and "patience" as it explores partnerships and acquisitions that would help remedy the company's problems paying artists over the past year. Based on Billboard's reporting, the amounts in dispute range from $50-$100,000 raised running campaigns on the service.

While the statement echoed sentiments PledgeMusic and its co-founder Benji Rogers have already shared over the past couple weeks, it did for the first time explicitly state the possibility of an acquisition was being explored. "These conversations, if successful, would lead to a transaction which would allow us to meet all of our outstanding obligations," read the statement.

It continued, "As a result, we are hopeful that, as long as the company is given some breathing space to operate, a solution to these current problems will be found."

PledgeMusic said it was bound by "commercial sensitivities" and could not currently reveal further details of those conversations.

The company also reiterated news previously shared by Rogers earlier week that it is planning for all future money coming into the company to be managed by an independent third party moving forward. (PledgeMusic's statement walked back Rogers' previous remarks, saying this is in "advanced discussions.") More information on that is forthcoming.

Earlier this week, Rogers announced he would return to PledgeMusic on a temporary basis as a volunteer strategic advisor and observer to the board of directors. Friday's statement said he will assist and advise the new management and finance team -- which was announced in October -- "on the inherited and existing issues, as well as with the forward planning for the company."

In light of recent reports and PledgeMusic's own admission to these payment problems, on Wednesday the British Musicians' Union advised artists to use "other established crowdfunding platforms until such time as this situation has been resolved." The union said it had met with PledgeMusic executives to discuss the problem and had been issued that outstanding payments would be brought up to date within the next 90 days -- a timeline the company had previously shared publicly.

"This is far from satisfactory, but at this time we believe that any legal action against Pledge may be counter-productive," the union's statement read. "That position may change over time and we will keep you up to date with developments."

PledgeMusic's statement concluded on Friday, "We ask for patience. We know that for a lot of you this must be wearing very thin, but we can only reiterate that we are fully focused on making this situation right."

These problems with payment date back at least to last June, when Variety first reported on it. PledgeMusic has otherwise declined to answer further questions specifically regarding the reason it cannot pay artists or regarding its plans to correct the issue.


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