Did You Hear the News?
So what’s happening at Muzak you ask? You’ve probably seen the headlines…
March 24, 2010 (Charlotte, NC)—Muzak Holdings LLC (“Muzak”), a premier provider of music, messaging and video for business, today confirmed that it has entered into a definitive agreement to be acquired by Mood Media Corporation (TSX:MM/ LSE AIM:MM), a leading in-store media specialist, for an enterprise value of up to approximately US$345 million.
Yes, BIG news for Muzak and for our industry. But what does it all mean?
Since 1934, Muzak has been owned by a multitude of companies. Initially the concept of Muzak was financed by the utility and telephone conglomerate, North American Company. They had the music distribution vehicle (electric and phone lines), so it made sense. In the late ‘30s Warner Brothers purchased Muzak because of their need for a movie soundtrack library. William Benton, a marketing mega star, senator, founder of the Encyclopedia Britannica and visionary for Voice of America, owned Muzak from the early ‘40s thru 1957. He saw Muzak as a vehicle to offer communications solutions worldwide. Muzak’s support of WWII both internationally and in the US delivered on Benton’s vision, as our growth continued.
The Wrather Corp. purchased Muzak in 1957, followed by Teleprompter in 1972, then Westinghouse in the early ‘80s.
Since the mid ‘80s, Muzak has been under the ownership of a series of financial institutions, including The Field Corporation, Centre Partners, ABRY Partners, and most recently Silver Point Capital.
The pending acquisition of Muzak by Mood Media signals a huge change for us. After 25 years of control by financial institutions, we will become part of a company that shares our passion to expand the business that we have loved for 77 years.
Contributed by Bruce McKagan, Company Communication, Heart & Soul Foundation
If you missed the Press Release it is available HERE on our website.