A weekly recap of the latest news on the CNBC Disruptor 50 companies upending the status quo in the markets.
No peace for Spotify
Radiohead and Atoms for Peace frontman Thom Yorke is part of a move by musicians to pull their music from Spotify, among other online music services, arguing it's a bad business model for the artists. Yorke's Atoms for Peace withdrew its catalog from Spotify this week in protest at the amount of money musicians are able to make from the streaming music service.
Spotify contended in a statement to CNBC that it is doing everything it can to support young artists. It said it has already paid $500 million to rights holders and by the end of 2013 will have paid pay out $1 billion, money invested at least partially in new music and new musicians.
Meanwhile, Yorke's band has partnered with British start-up Soundhalo for downloading of live tracks and videos.
As the furor grew over the decision, Yorke tweeted, "Not enjoyed being target for facile mudslinging we've the right to discuss and optout of #Spotify. debate is important."
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Kabam's value is exploding
The latest valuation for video-game maker Kabam pegs it at $700 million, based on a $38.5 million secondary offering for employee shares completed this week.
Kabam stressed that none of the money was going to the company, and was an opportunity for employees to sell their shares. "Financially, Kabam is remarkably solid," CEO and co-founder Kevin Chou said in a statement. Kabam has more than $50 million of cash in the bank and expects to grow revenues to more than $300 million this year, the company stated.
And in the latest Aereo legal development …
…Victory! Sort of. In a setback for the growing list of broadcasters that have sued Barry Diller's IAC-backed Internet TV pioneer Aereo, a U.S. appeals court declined Tuesday to rehear an appeal by the major broadcasters seeking to temporarily shut down the online television start-up. Walt Disney Co.'s ABC and Comcast Corp's NBCUniversal (owner of CNBC) were among the broadcasters bringing the suit. Last week, Aereo was sued by the ABC affiliate in Boston, owned by Hearst, after the launch of its service in Boston.
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