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INgrooves-Fontana deal announced

INDIE POWER PLAY: All that speculation in recent weeks wasn’t smoke. Look for INgrooves to announce the acquisition of Fontana from UMG today. The new company, which will go by INgrooves Fontana, will provide the most comprehensive suite of marketing and distribution services in the indie biz, creating the largest independently run distribution company serving the indie music community. INgrooves began discussions with UMG about obtaining Fontana back in October, and sources say the major saw the opportunity to grow INgrooves through this merger, especially as digital streaming services begin to take off. The combined company will be run jointly by Dave Zierler, the newly named President of INgrooves, and Fontana President Ron Spaulding. Both report to Robb McDaniels, the company’s founder. UMG holds a minority interest in INgrooves. (3/2a)

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