Mood Media to Acquire Muzak for $305 Million in Cash
Known as a provider of background music in elevators and restaurants, Muzak emerged from Chapter 11 bankruptcy last year.
NEW YORK - Mood Media, a provider of in-store audio and video services, has agreed to acquire Muzak Holdings, known for providing elevator music, for $305 million in cash, the Wall Street Journal reported on Thursday.
The acquisition of the company, which emerged from Chapter 11 bankruptcy last year, also calls for the takeover of $10 million in debt and $30 million in earnouts. Many of the firm’s biggest creditors were music companies that license songs for Muzak playlists.
Mood, based in Toronto, will use the purchase to build its presence in the U.S. It has a large presence in Europe, where it provides background music and other services to around 117,000 locations, including Nike and Hermes stores.
Muzak is responsible for background music in about 300,000 U.S. locations - from restaurants and hotels to malls. It makes additional revenue from on-hold messaging and video programming services.