HMV Acquires Mama Group

HMV chief executive Simon Fox says the acquisition of MAMA Group is a significant step in his bid to transform his company.

The High Street music and books retailer bid £46 million for the multi-faceted and independent music company in the lead up to Christmas and it now has an adequate level of acceptance from MAMA shareholders.

Earlier in December the MAMA board recommended its shareholders reject a £30 million unsolicited bid from international investment firm SMS Finance, which had built up a 30 percent stake in the company since the beginning of 2009.

Apart from its venues, MAMA also owns other interests including an artist management business that represents bands such as Franz Ferdinand and the Kaiser Chiefs.

Fox unveiled his vision for transforming HMV in March 2007. He was reacting to falling sales of CDs and the growth of illegal music downloads.

His other moves have included introducing the Pure HMV loyalty card scheme, taking a 50 percent stake in online music store 7digital and even opening a pilot HMV Curzon-branded three-screen digital cinema in Wimbledon.

The company has also been helped by the collapse of rival music retailers Zavvi and Woolworths during the recession.