McGee to make £4m from Poptones float

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The Independent Online

Alan McGee, the former head of Creation Records and the man who discovered the pop group Oasis, is to make a £4m paper fortune when his latest venture floats on the stock market. Poptones, the internet music company that Mr McGee set up after he quit Creation last year, is expected to be valued at £11.44m when it floats on the Alternative Investment Market. His 38.6 per cent stake will be worth £4.41m.

Alan McGee, the former head of Creation Records and the man who discovered the pop group Oasis, is to make a £4m paper fortune when his latest venture floats on the stock market. Poptones, the internet music company that Mr McGee set up after he quit Creation last year, is expected to be valued at £11.44m when it floats on the Alternative Investment Market. His 38.6 per cent stake will be worth £4.41m.

Mr McGee said his new company would "steal a march on more ungainly competitors", including Creation, the company he helped to found. Mr McGee is no stranger to controversy - last week he attacked New Labour for being out of touch.

He said Poptones would provide artists with funding to produce albums without necessarily signing them for the long-term, and would work on a "band by band" basis for deals with major overseas labels.

Poptones plans to raise £2.05m through the flotation, with the funds going to finance its artist development programme. He said: "I think the major record companies are becoming more and more out of touch. We will be completely independent of any corporate structure. Sometimes we will sign up a band for six albums, sometimes for one album. There are no rules about it."

He said larger record companies had ignored the commercial opportunities of digital technologies and that online music content would present them with a growing threat.

Speaking yesterday, he said: "As a music industry we have got to rewrite the script to be much more flexible. If we can do that, as a music industry, we will survive. But the big companies will be irrelevant.

"Three years ago I was predicting that telecoms companies would buy up music companies and a lot of bands would get dropped. The industry saw me as the bogeyman but everything I have predicted is coming to fruition."

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