From Iceland — Gogoyoko In Trouble

Gogoyoko In Trouble

Published October 4, 2013

Larissa Kyzer

Gogyoko, the online music store and streaming service which gives musicians “total control over the way their music is sold,” lost 24.6 million ISK last year, as opposed to the 106.2 million ISK they lost in 2011, Víðskiptablaðið reports. The primary reason for this loss differential is that the company had a debt of 79.6 million ISK forgiven in 2012, without which their yearly losses would have actually totalled 104.2 million ISK. During the last year, gogoyoko’s operational losses increased from 20.9 million ISK to 30.1 million, while their depreciation totals have decreased, from 70.4 million ISK to 54 million. And in spite of this debt cancellation, gogoyoko’s debt increased from 20.1 million in the last year.
The last year has been a turbulent one for Gogoyoko to say the least. After significant changes in the company’s ownership, the entire staff was laid off at the start of the year and managing director Hreinn Eliasson also departed. In June, one of the company’s founders, Haukur Davíð Magnússon, returned as Director of operations, and Ívar Kristjánsson, the CEO of CCP Games, took over as chairman on gogoyoko’s board of directors. In August, the former staff members announced that they intended to start their own competing company, a plan which gogoyoko has claimed would be a breach of their former contract.

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