MusicMagpie (LSE: MMAG) has confirmed early-stage talks over a possible takeover bid from telecoms giant BT and private equity firm Aurelius. The discussions come after MusicMagpie saw its share price plunge over two years after listing on the London Stock Exchange at a £200 million valuation.
The company’s stock jumped 30% today on news of the potential buyout bids, which MusicMagpie noted are still at a “very early stage”. BT and Aurelius now have until December 18 to formalise an offer.
MusicMagpie has struggled with declining sales and profits amid economic headwinds like postal strikes and weak consumer confidence. Its US division Decluttr also had disappointing performance as the shift to music and video streaming cut into disc media sales.
