HMV agrees to pay £46m for MAMA Group

Entertainment firm HMV has agreed to acquire MAMA Group for 46 million pounds. In a move that will allow the company to enjoy a bigger slice of the live music market.

HMV’s offer outshined a previous offer of 38 million pounds from Mama's leading shareholder Luxembourg-based SMS Finance.

It may be noted here that less than year ago HMV and MAMA formed a joint venture called the Mean Fiddler Group, which operates eleven music venues.

Commenting on the issue, HMV chief executive Simon Fox said, “Our joint venture has worked well since its formation and the full combination of HMV and Mama will enable us to accelerate our growth into live music.”

MAMA pocketed 4.8 million pounds in pre-tax profits during i2-month period ended July 31.

Apart from running live music venues, MAMA Group operates the Godskitchen, Lovebox and Global Gathering festivals and manages artists.

In the after-hours trading, shares in HMV slipped 1.4p to 96½p, while MAMA shares shed 0.2p to 5.3p.