Bugs acquires stakes in HD audio file developer

[THE INVESTOR] Online music streaming firm Bugs said Aug. 12 that it has acquired 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 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.

By Kim Young-won (wone0102@heraldcorp.com)