Vector Capital’s planned acquisition of Muzak parent company Mood Media has officially closed.
The San Francisco-based private equity firm announced last month that it would acquire Houston-headquartered Mood Media, which was founded in 2004 as Fluid Music Canada. Mood Media purchased “elevator music” mainstay Muzak in 2011, for a reported $345 million, and owns background-music company Trusonic and audio-visual systems integrator Technomedia.
Mood Media – which filed for Chapter 11 bankruptcy in July of 2020 – also possesses kiosk-based music distributor Somerset Entertainment, branding agency DMX, and European audio-visual installation provider BIS Group. While the financial terms of the buyout haven’t been disclosed, it’s possible that Vector Capital acquired Mood Media at a bargain price, given the entity’s recent bankruptcy as well as ongoing lockdowns and retail closures.
Vector Capital operating executive (and former Deluxe Corporation higher-up) Malcolm McRoberts has become Mood Media CEO, with previous CEO David Hoodis set “to support the Company and team on a transitional basis.” In a statement, McRoberts outlined his plans and growth strategy for Mood Media moving forward.
“As CEO, my focus is on three key areas: deepening our client and channel relationships, expanding ongoing investments in the Company’s global technology platform and delivery capabilities, and bolstering our product offerings through innovation,” he said in part.
“Having spent the past two years working alongside the Vector Capital team as a Consultant and Operating Executive, I have seen firsthand the value and expertise they bring to their portfolio companies and I am eager to lead Mood Media as CEO,” finished McRoberts, who also held executive positions at NCR for nearly two decades.
In a statement of his own, Vector Capital Managing Director David Fishman emphasized the important part that his company’s funding – and, in turn, the continued expansion of Mood Media’s divisions – will play in the coming months and years.
“We are confident that our long-term capital support will enable Mood Media to invest in the technology initiatives and acquisitions that will further differentiate Mood and accelerate our product vision,” Fishman said in part.
2021’s first seven days have brought several noteworthy acquisitions and funding efforts for music industry companies. Earlier this week, MelodyVR officially completed its acquisition of Napster, in a $70 million deal, while Live Nation issued $500 million in fresh debt as the pandemic drags on. Additionally, Anghami, the leading music streaming service in North Africa and the Middle East, received a major investment from Dubai-based Shuaa Capital yesterday.
Moreover, a number of rumored acquisitions and investments have made headlines in recent weeks. Square, the Jack Dorsey-led payments company, is reportedly looking to purchase Jay-Z’s Tidal streaming service. Plus, rapper-entrepreneur Master P and NBA veteran Baron Davis are reportedly in talks to buy Reebok for $2.4 billion; Adidas acquired the footwear and apparel company for $3.8 billion in 2006.