Korean online music streaming firm Bugs said Aug. 12 that it has acquired a majority stake in Groovers, a lossless high-resolution audio file provider, in a bid to get competitive edge in the streaming music industry.
Groovers offers high-definition audio files, such as FLAC, MQS and DSD.
Bugs did not disclose the amount of the investment, only noting that it will hold a 53.9 percent stake while its subsidiary iRiver will hold 44.2 percent of Groovers.
“Teaming up with Bugs, Groovers will compete in both the domestic and global markets,” Jeon I-bae, the chief executive of Groovers said.
Groovers plans to expand its online audio business into Japan with high fidelity music files throgh the MQS (Mastering Quality Sound) website. A spokesperson at the company said that the Hi-Fi audio market in Japan is one of the largest among its overseas markets, and it will strengthen its market presence with the new audio file business added to the conventional audio device business.
iRiver increased its overseas investment after its acquisition to SK Telecom in August of last year. A task force drawn from SK Telecom and iRiver sales operations and development teams for overseas online music business drove the foundation of Groovers Japan.