CDStar just the start of spend-up, says FlyingPig

FlyingPig's purchase of music e-tailer CDStar is but one of three or four 'major transactions' in the pipeline for the company, according to CEO Mark Battles.

FlyingPig's purchase of music e-tailer CDStar is one of three or four "major transactions" in the pipeline for the company, according to CEO Mark Battles.

The purchase of CDStar, the music retailing arm of Estar Online, which is listed on the secondary board of the NZSE, is a stock-only deal likely to become effective on January 1.

The purchase was revealed yesterday during the announcement that IT Media, the publishing firm owned by FlyingPig , is being bought by Wilson Neill.

The $17 million deal will give IT Media founder Tim Connell a 30% stake in Wilson Neill, making him managing director.

Battles says IT Media's absorption into a listed company will aid in the completion of several "international deals".

"We're now in acquisition mode and with the Wilson Neill shares I've got a currency to actually acquire rich content businesses overseas ."

Redundancies are expected in the New Year as the two retail businesses consolidate. CDStar currently has three employees.

FlyingPig will continue to run CDStar , but will also use its platform for a FlyingPig Music retail venture in two or three months' time.

Battles says CDStar has 30,000 to 40,000 customers in its database, which combined with FlyingPig's pushes the overall database to over 100,000.

"We're looking to leverage our music magazines, such as Rip It Up and Cream and incentivise their readers to buy from us online – and to drive more readers [to the print publications] from our online sites." These include the men's portal fire-engine.co.nz and youth site Toast.

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